Exhale...Apple covered call

C

Cabin111

I try and do covered calls waaay out of the money...Just for extra income (quality companies).

I have a option (100 shares) on Apple for the Jan 24 $190.

Really don't want it to get called away...But too cheap to buy it back.

Time decay is my friend, in moments like these...
 
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Don't create a new thread for every single trade you made.
In fact, you have created hundreds of new threads with no value.

Actually, we prefer you to stop exhaling totally right away.



Create a Journal. Every time you enter a trade, document your trade in your Journal.
 
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@Cabin111, you have been writing a lot of covered calls over the years. How profitable are you writing covered calls? Some insights are appreciated.

I did that from 2013 to 2014 when I first started trading options. Stopped because I found it not worth the effort, very little or no gains, compared to buy and hold.

Since 2014 I simply do very selective directionals, mostly long calls and occasionally long puts. I also tried butterflies but the results weren't meeting my expectation.
 
ironchef said:
@Cabin111, you have been writing a lot of covered calls over the years. How profitable are you writing covered calls? Some insights are appreciated.

I did that from 2013 to 2014 when I first started trading options. Stopped because I found it not worth the effort, very little or no gains, compared to buy and hold.

Since 2014 I simply do very selective directionals, mostly long calls and occasionally long puts. I also tried butterflies but the results weren't meeting my expectation.
More...

Only about a quarter to one sixth of my stocks are covered calls. As I have said before, I pay little to no income tax. It has worked out good/fine for me. Yeah, good quality gets called away...That's a given.

I'll give two quick examples how I trade. I own 300 shares of BG...Very boring (watching paint dry). If I still see value in the company (BG), I will buy 100 more shares, then do a leap way OTM on one of the older 100 shares I own on that company. So I am just putting a very small amount (option money), on the table.

The other would be QQQ. I own 100 shares and at some point I am looking to buy another 100 shares. With that new 100 shares I'll do a leap way OTM.

Small skin in the game for income...Yeah, I know boring. So when I am heavy in one stock (or industry...Think oil), I'll options something for some income. Not rocket science...
 
Cool...Now you can roll it down to the March $185 and collect another $600 on Monday.

You have all the way until December 2025 expiration to collect some income everyday.

You have to keep it moving and not let them catch you. As soon as they catch you then they takeaway your shares.
 
@Cabin111, Your timing is very bad.

You should have done the covered call a day earlier /
you shouldn't have done the covered call after the earnings release.


Timing / hesitation is your greatest enemy.
 
Cabin111 said:
I'm a growth/value investor.

I would encourage you to block me, if you don't find my post informative...
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Unfortunately I will still see all the threads you create.

why don’t you create a journal called “cabin’s candid covered calls” and put all your stuff in 1 place?
 
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