🚨Market Masters Is off Today🚨
But I’ll be live with Jeffry Turnmire, Nate Tucci, Kane Shieh and Emily Turner at 11 a.m. ET for the Summer Stock Roundtable. We’ll hand you the exact trade setups to help you navigate the next few months with total clarity [tap to join us]
You know what I’ve been running a lot lately? The Triple Crown.
That’s what I call it when I’m long the stock, selling covered calls against it and selling puts underneath it — all on the same name at the same time. Most people think you need to pick a side: bullish or bearish, long or short. I don’t play it that way.
I want to get paid from three angles — the stock if it runs, the calls if it stalls and the puts if it dips. And here’s the kicker: Even when the position moves against me, I can still bring in serious premium.
Take Broadcom (AVGO). I had the Triple Crown running there for a while and it became one of my biggest holdings. Eventually, a large chunk got called away. That’s the trade-off with covered calls — you cap your upside — but I collected strong premium the whole way up and now I’m rebuilding because I still like the setup.
The same thing happened with Nvidia (NVDA). I sold 14 call contracts against the position. If the shares get taken away, fine. I already got paid and I can reset the structure at better strikes.
And then there’s Robinhood (HOOD), which is probably the best example of why this approach works. The stock got cut almost in half while I stayed long the whole time. Most traders would’ve panicked. I kept selling puts on the way down, got assigned shares at lower levels and then turned those shares into income machines by selling more covered calls against them.
That’s the real advantage here. You don’t need perfect direction. A stock can chop sideways, drift lower or do absolutely nothing and you’re still pulling premium out of the position the entire time.
How Assignments Become an Advantage
A lot of traders treat assignment like it’s a disaster. In this setup, it’s usually an opportunity.
You sell a put, collect premium and if the stock drops, shares get assigned to you at a lower basis. Now you’re holding stock at a discount and can immediately start selling covered calls against it. If the stock rebounds, you can roll those calls higher for additional credit and keep the wheel spinning.
The same logic applies to rolling positions. If calls get too close to your strike, roll them up and out for more premium. If puts get pressured, roll them down and out. The whole system is designed to keep premium flowing while steadily improving your cost basis over time.
But the ticker selection matters a lot. You want names with liquidity, volatility and healthy premiums. That’s what makes the strategy worthwhile. Stocks like AVGO, NVDA and HOOD work because they generate enough option activity to consistently pay you for taking the risk.
And yes, this still requires discipline. All trading involves substantial risk and you should never trade with money you can’t afford to lose. The reason this approach stays manageable is because the sizing is controlled, the tickers are chosen carefully and the constant income helps smooth out the emotional swings that wreck most traders.
The goal isn’t perfection. It’s building a structure that keeps paying you while everyone else is panicking over every dip.
Trade well,
Jack Carter
Jack Carter Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Starting at 11AM ET: The Summer Stock Roundtable
I don’t want you heading into the summer months without a clear plan.
Kane, Nate, Jeffry, Emily Turner, and I have put together a specific list of over 12 trade setups that we are personally tracking for the weeks ahead.
We’re laying it all out:
- Specific stocks on our watchlist
- Setups we believe could lead the next move higher
- Plus my Signal Calendar, free for attendees
While there are no guarantees in the market, this is the exact roadmap we are using for our own summer strategy.
