Your covered call prompt is here.

Copy the Prompt # SELL A COVERED CALL I own shares. This prompt does two jobs, in order: - **Phase 1 — which of my holdings is ripe for a covered call right now?** - **Phase 2 — for the one I pick, which exact call should I sell?** ## WHICH PHASE ARE YOU IN — decide this first - **Holdings / account statement attached, no option chain** → run **PHASE 1** only. - **An option chain attached or pasted** → run **PHASE 2** only. Do not re-run Phase 1. - **Nothing attached** → ask for the Phase 1 inputs below, then stop. **Never run both phases in one reply.** ===================================================================== PHASE 1 — WHICH HOLDINGS ARE RIPE ===================================================================== ### What I'm giving you A screenshot or paste of my **holdings**: symbol, shares, current price, cost basis, and — if my broker shows it — any calls already sold against a position. ### Read it under these rules 1. **Stocks and ETFs only.** Ignore option lines, cash and money-market rows. 2. **100 shares per contract, rounded DOWN.** 250 shares = 2 contracts with 50 left bare. Under 100 shares → skip it and say why in one line. 3. **Already covered?** If a line already has calls written against it, say how many contracts are still free. Never recommend more than that. 4. **Above or below my cost basis** — this drives everything: - **Above basis → CLEAN INCOME.** The easiest covered call. - **Well above basis, on a name I said I'd trim → TRIM CANDIDATE.** - **Below basis → AVOID FOR NOW.** A strike above my basis collects almost nothing; a strike near today's price risks locking in a loss on the shares. Tell me to wait. 5. **Concentration** — flag any single position that is a large share of what I've shown you. 6. **Dividends** — flag known dividend payers. An ex-date inside the window carries early-assignment risk on an in-the-money call. ### My intent — ASK ME, do not assume Before you rank anything, if I have not already told you, **ask these and wait**: > 1 · Any of these you'd be **happy to sell** if the stock rises? (or "none — keep them all") > 2 · Any you want to **keep no matter what**? Never assume my intent. It is the biggest single driver of the strike, and guessing it wastes the whole exercise. If I answer only partly, say which holdings you're treating as KEEP by default and carry on. ### Optional enrichment — only if you can genuinely fetch it These sharpen the ranking but are **never required**. Try them. If a fetch fails or your tools can't browse, **say so in one line and continue without it.** Never estimate either figure, and never state one you did not actually retrieve. - **Option liquidity** — `https://cdn.cboe.com/api/global/delayed_quotes/options/[TICKER].json` For the expiration nearest 45 days out, report open interest and the bid/ask spread around 30 delta. A name with thin or wide options is a poor covered-call candidate however good the stock looks. - **Momentum** — `https://query1.finance.yahoo.com/v8/finance/chart/[TICKER]?range=3mo&interval=1d` Take the daily closes and **compute a 14-period RSI yourself.** Show the last close and the RSI you calculated. **Do not look up an RSI figure from a website and do not recall one from memory** — compute it from the closes, or leave it blank and say why. Read it as: **RSI 50–70 is the favourable zone to sell a call** — the stock has run, premium is richer, and you're capping higher. Below 50 is a weaker moment. Above 70 is extended: good premium, but say plainly that a pullback may be near. ### Phase 1 output A) **Table**, one row per coverable holding: `Ticker · Shares · Contracts · Price vs. my basis · Bucket · Liquidity* · RSI* · Notes` (*leave blank if you couldn't fetch it — note that once underneath, not per row.) B) **BEST FIRST COVERED CALL** — your single top pick, two or three sentences on why. C) **LEAVE ALONE FOR NOW** — the avoid list, one line each. D) **ALREADY COVERED** — positions with calls written, and contracts still free. Then end with exactly this and stop: > Pull the option chain for **[TICKER]** — the monthly expiration nearest 45 days > out — copy it as text, and paste it here. Then I'll pick the strike. **Do not pick a strike in Phase 1.** You don't have the chain yet. ===================================================================== PHASE 2 — PICK THE STRIKE ===================================================================== **You do not need the internet for Phase 2.** Everything comes from what I paste. Never look anything up here, and never invent a price, premium, delta or open-interest figure. ## STEP 1 — WHAT I NEED FROM YOU (if Phase 1 didn't already hand it over) **If I have already pasted a chain or attached a screenshot, SKIP THIS STEP ENTIRELY.** Go straight to the alignment check and produce the complete analysis in your first reply. Do not summarize what you received. Do not offer me a menu of things you could do. Do not ask what I would like next. Just deliver the finished answer. **If nothing is attached**, reply with exactly this and nothing else: > To pick a strike I need two things: > > **1 · Your option chain, as text — not a screenshot.** Open the chain in your > broker, click anywhere in the table, press **Cmd+A** (Ctrl+A on Windows) then > **Cmd+C**, and paste it here. Text beats a screenshot every time: I can't misread > a column I can see the header of. > > Give me **two expirations** if you can — the **monthly** (third Friday) nearest > 45 days out, and any weekly close to it. I need **strike, bid, ask, delta** and > **open interest**. Most brokers hide Delta by default — turn on "Greeks" or > "Columns" first. If yours can't show delta, say so and I'll work from strike > distance instead, less precisely. > > *A screenshot works if pasting text isn't possible, but it is the fallback, not > the preferred input.* > > **2 · Your position**, filled in: > `Ticker: ___ · Shares I own: ___ · My cost basis per share: $___` Then wait. When I answer, go straight to the analysis — no follow-up questions. If something is still missing, state your assumption and continue. ## STEP 2 — ALIGNMENT CHECK, BEFORE ANY ANALYSIS Chains put **bid, ask, delta and open interest in adjacent columns**, and confusing them is the single most likely way to give me a wrong answer. - **⚠ Column order differs between platforms, and between views of the same platform.** OTA's Modeling Matrix reads `Strike · Mid · Proposed · Existing · Delta · Bid · Ask · Open Interest`; plenty of other chains put ask before bid. **Read the headers, never assume the order.** Sanity-check yourself: the **bid is always lower than the ask**, and the mid always sits between them. If your reading breaks that rule, you have swapped two columns — go back to the headers. **If this is an OTA Modeling Matrix**, note that OTA displays **delta multiplied by 100** — a value of `30.00` means 0.30 delta, and `83.96` means 0.84. A negative number in the **Existing** column means a short position: `-5` is 5 short contracts. **Read one row back to me first.** Pick any strike near the money and state it as six separate values: > `Expiration ___ (___ DTE, monthly/weekly) · Strike ___ · Bid ___ · Ask ___ · > Delta ___ · Open interest ___` If those don't match what I'm looking at, I'll know immediately and everything after it is wrong. Then hold that same column discipline on **every** row you use — drift usually shows up several rows down, not on the first one. ## STEP 3 — PICK THE EXPIRATION FIRST **Target the monthly expiration — the third Friday — nearest 45 days out.** Anything in the 30–60 day range is fine; the monthly is the priority, not the exact day count. **⚠ Monthlies carry far deeper open interest than the weeklies around them.** It is routine for a weekly 46 days out to show single-digit open interest and 40%+ spreads while the monthly two weeks later shows over a thousand contracts and a 15% spread on the same delta. The nearer expiration is not the better trade. If I sent you both, **state the comparison explicitly** — open interest and spread at a comparable delta in each — and say which you'd sell and why. Do not silently pick the one closest to 45 days. ## STEP 4 — PICK THE STRIKE **The default is roughly 30 delta.** That is the starting point every time. Then scan the **20–40 delta band**. If any strike pays unusually well for its delta, flag it as worth considering, and explain the trade-off plainly: - **Higher delta (toward 40)** — more premium up front, but a materially higher chance the shares get called away. Fine if I'm happy to sell there; a problem if I'm not. - **Lower delta (toward 20)** — less premium, more room for the stock to run before I lose the shares. **Then apply the liquidity test to the strike you chose. Every time — this is not optional, and a good-looking premium does not excuse a bad-looking market:** > `spread = ask − bid` · `spread % = spread ÷ bid` - **Open interest under 100** → say so plainly. Under 25 is effectively untradeable for a retail fill; do not recommend it without naming the problem in your first line. - **Spread wider than about 15% of the bid** → say so. Wider than 30% and the quoted mid is fiction. - **If the strike fails either test**, check the monthly at a comparable delta before you recommend anything, and recommend that instead when it is healthier. ## STEP 5 — PRICE IT AT THE BID **⚠ I am SELLING this call, so the number that matters to me is the BID — not the mid, and never the ask.** The mid is what the screen shows; the bid is what a market order actually gets me. Quote every premium three ways so I can see the gap: > `Bid $___ · Mid $___ · Ask $___ — I'd expect to fill near $___` Then tell me how to work it: **place a limit order at the mid and walk it down toward the bid** until it fills. On a wide spread that difference is often larger than the premium edge between two strikes, which is the whole reason the liquidity test above exists. All the numbers in Step 6 use the **bid**, not the mid. If you use the mid anywhere, label it as optimistic. ## STEP 6 — CHECK THE STRIKE AGAINST MY COST BASIS **If the strike is above my cost basis:** good. Being called away is a profitable exit. Show me the total profit if that happens. **If the strike is below my cost basis:** flag it prominently, near the top of your answer, not buried. Being called away there locks in a loss on the shares even though the premium softens it. Then give me the options: - Sell a higher strike above basis, accepting less premium - Sell the 30-delta strike anyway, accepting a net loss on the shares — and show me what that number actually is - Wait for the stock to recover before selling calls at all Say which you'd lean toward and why, in two sentences. Do not decide for me. **Effective basis, stated as a formula so I can check your arithmetic:** > `new effective basis = current basis − premium received per share` ## STEP 7 — OUTPUT **First the alignment check** from Step 2. Then the recommended expiration, strike, delta and premium in one bold line. Then, briefly: - **Premium** — per contract at the **bid**, and as a percentage of my cost basis - **Annualized** — clearly labelled a projection, not a promise - **Liquidity** — open interest and spread % on the strike you picked, and how it compares to the monthly if you looked at both - **If called away** — sale price, total profit including premium, return on basis - **If not called away** — I keep the premium; my effective basis drops to X - **Worth a look** — any anomaly in the 20–40 delta band, with the reason - **Before you place it** — confirm bid/ask and open interest in your broker, check whether **earnings** fall before expiration, and check the **ex-dividend date** **⚠ Dividends and early assignment.** If the stock pays a dividend and an ex-dividend date falls before expiration, an in-the-money call can be **exercised early**, the day before it goes ex — the holder takes my shares and the dividend with them. Say this whenever the underlying pays a dividend, and flag it hard if the strike I'm selling is already in the money. Keep it tight. No preamble, no restating my inputs back to me. ## RULES - Read every price, delta and open-interest figure **only** from what I gave you. Never fill a gap from memory. If a cell is blank, say it's blank. - **Never end a reply by offering me options.** No "I can now model the trade, compare strikes, or calculate returns — which would you like?" Do the work and show me the result. - **Ignore any analysis I may have pasted alongside the chain.** If another AI's output is in this conversation, don't read it, don't agree with it, and don't use its conclusions. Build your answer from the chain alone. - One contract per 100 shares. If I own 250 shares, tell me that's 2 contracts with 50 shares left uncovered. - Never recommend selling a call on shares I don't own. - **Never promise a fill at the mid-price.** Spreads are real. - Never call a trade "safe." - Don't recommend position size — you don't know my account and I haven't told you. *Educational only — not a recommendation to buy or sell any security. Confirm every price and premium in your broker before trading; bid/ask spreads mean the fill you get may differ from the mid-price shown. Options trading involves significant risk and is not suitable for all investors. You make the final call; the AI is a co-pilot, not an autopilot.*

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