I want out of EXC

[Slimcan]

Good Idea?
I own EXC at $40 and now trades at $31. Would it be a good idea to sell a call at $32? I may be able to pick up some cash if it sits there under the $32 stike or finally say goodbye if it goes into the strike price.
I am not overlooking something if I do this?

 

[jamesbp]

Good Idea?
I own EXC at $40 and now trades at $31. Would it be a good idea to sell a call at $32? I may be able to pick up some cash if it sits there under the $32 stike or finally say goodbye if it goes into the strike price.
I am not overlooking something if I do this?

Depends on whether you have a directional view ...

- Going Down ... Sell stock
- Range Bound .... Sell / Roll Calls
- Going up ... to say 35 ... 1x2 Call Ratios ... short strike at target price

Better still ... in my opinion ... never own stock unless you have to ... traders have a habit of getting emotionally attached to stock which clouds decision making ... better to simply trade Options-Only strategies ...

 

[TheGoonior]

Good Idea?
I own EXC at $40 and now trades at $31. Would it be a good idea to sell a call at $32? I may be able to pick up some cash if it sits there under the $32 stike or finally say goodbye if it goes into the strike price.
I am not overlooking something if I do this?

You're overlooking the fact that it's in a pretty steep downtrend and could see $27 (or lower) before it sees $32. Sept 32 calls will net you a whopping $0.45 right now.

 

[nkhoi]

Good Idea?
I own EXC at $40 and now trades at $31. Would it be a good idea to sell a call at $32? I may be able to pick up some cash if it sits there under the $32 stike or finally say goodbye if it goes into the strike price.
I am not overlooking something if I do this?

sell half then you feel only 1/2 of the pain.

 

[SWScapital]

Good Idea?
I own EXC at $40 and now trades at $31. Would it be a good idea to sell a call at $32? I may be able to pick up some cash if it sits there under the $32 stike or finally say goodbye if it goes into the strike price.
I am not overlooking something if I do this?

Is the reason you still hold the stock valid? Thats the only real question to ask yourself.

 

[Nighthawk]

sell half then you feel only 1/2 of the pain.

 

[Slimcan]

I feel earnings are steady at above .50 each ¼ . enough to pay the dividend . I do not see it going back to $1 earnings ever. So , the Ideal situation I would keep selling calls and pick up a little something. The .45 is really not that small because it is almost = to the .50 dividend it once paid.
If the stock was to be called away I would take the loss and write off the loss. Is there any type of wash sale rule or something iam missing…….
Thanks for all this great talk, I love trading

 

[xandman]

Your down 25%. Cut your losses and move on.

 

[xelite777]

Is the reason you still hold the stock valid? Thats the only real question to ask yourself.

Excellent answer.

 

[jimmyjazz]

EXC is parked right on the 200-day moving average, which could be a good test. You're either at a bottom . . . or you aren't. Momentum seems to have leveled off. Distribution seems to still be ahead of accumulation, but the latter is catching up.

It might not be the worst time to sell some $32 calls, IF you still like the stock, but for God's sake wait for an up day.