I’m experimenting with a covered call strategy for Ford (F) in my IRA. For several weeks, Ford has been building a multi-month base, setting up for a strong bull run. I’ve tried to buy the stock at the base’s low and sell covered calls at the base’s high.

F has weekly options, so you can sell the calls regularly. However, I found that selling the second week worked best. Now I’m in a bind with Friday’s explosive day—probably caused by the news that Ford’s new EV pickup is oversubscribed and the hope that the dividend will be raised.

I have a profit in the stock and past calls but now in the hole with the current calls since price has popped above the strike. I will have to buy the calls back, which is okay since time premium is gone and sell a higher expiration, or let the stock go.

The point is that Ford is now in play as the institutions shift into cyclicals. Price broke out of a long base strongly Friday on high volume, which usually signals a leg up. Now, we can look to buy pullbacks as price grinds higher.

Since this is a covered call strategy, I’ll probably keep the stock and continue selling out-of- money calls.