GE covered call question.

[noob_trad3r]

Glad I wrote those covered call options. Will be interesting to see what happens in the next few weeks. Very interesting.

 

[dagnyt]

Quote from noob_trad3r:

Glad I wrote those covered call options. Will be interesting to see what happens in the next few weeks. Very interesting.

Please do not let the RESULTS tell you whether the original trade was a good one or not.

There's a big difference between 'good' and 'profitable.'

Don't forget that the favorite does not always win the race. Underdogs and longshots have their day.

Mark

 

[noob_trad3r]

I still have my GE stocks I sold more calls for may

I did buy more though in the 6 dollar range from the premium I collected. GE went down so fast.

so far I have not lost my shares but I am compounding the premiums into more stocks to write more covered calls.

and collected the dividend

So I guess if I can keep this up my costbasis could be 0.

Is this possible?? has anyone been able to do this with the covered calls and using the premiums to buy more later?

 

[dagnyt]

Quote from noob_trad3r:

if I can keep this up my costbasis could be 0.
Is this possible??

Yes, it is possible.

It takes writing calls again and again and not selling your shares.

Mark