About Toll Booth Trading

Overview

Toll Booth is a trading bot for generating income from existing stock portfolios by selling covered call options. It is designed for retail investors with established ($100k+) portfolios who want incremental income without significant time investment. The platform abstracts the complexity of options trading—no need to manually open, roll, or close every position—while still giving you control over how and whether positions are opened, rolled, or closed.

Platform Compatibility

Currently supports Charles Schwab accounts, with Tastytrade support planned for later in 2025. Covered call trading is allowed on regular and retirement accounts. Be sure to enable covered options trading approval with Schwab before connecting to Toll Booth.

Covered Calls

A covered call involves holding a long stock or ETF position while selling a call option on the same asset, collecting premium for additional income. Managing positions manually can be time-consuming—Toll Booth automates the workflow while preserving your ability to set high‑level controls.

How and why covered calls can be tax efficient

• Tax‑advantaged accounts: Premiums and assignments occur inside IRAs/401(k)s, so gains can compound tax‑deferred (Traditional) or tax‑free (Roth), subject to account rules.
• Defers realizing stock gains: Covered calls can generate cash flow without immediately selling appreciated shares. If assignment occurs, the option premium is included in your stock sale proceeds; if the option expires, the premium is recognized in the current year.
• Fewer forced sales: Conservative, out‑of‑the‑money strikes and dividend‑aware rolls aim to reduce early assignment, helping preserve long holding periods when desired.

Tax treatment depends on your situation and jurisdiction and may change. This is not tax advice. See Legal and consult a qualified tax professional.

How it works

Toll Booth automates the covered‑call lifecycle to turn your existing shares into consistent income while reducing busywork: it finds opportunities to open positions, manages exits to lock in gains or protect downside, and rolls positions to extend income streams while aiming to keep your shares or maximize returns, based on your investment priorities.

• Opening: Screens symbols you own and sells conservative, out‑of‑the‑money calls to harvest premium within your risk guardrails.
• Closing: Takes profits at configurable targets or risk events to realize premium and reduce exposure.
• Rolling: Proactively extends duration or improves strikes to continue income generation and increase odds of keeping shares.

Other Trading Instruments

At this time, Toll Booth only places orders for covered call positions. Support for equities and other option strategies may be considered in the future.