Worst Case Scenario in Covered Call trading

[destriero]

An exemplary PnL diagram of an "Extended Collar" (CC + xLP): S=10, SC.K=7.5, LP.K=5, DTE=45
Watch the R:R
View attachment 328284

Show us the ticker, tenor, strikes.

$1,000 says you're FOS.

 

[Quanto]

This thread is all the Cialis that I need. The OP thinks he's discovered the wheel and doesn't understand basic synthetics. Where's the FreePut?

Why should I disclose this finding to such a person like you, or anybody else? Just keep & stay frustrated!

 

[Quanto]

Show us the ticker, tenor, strikes.

$1,000 says you're FOS.

Sorry, it's sacred secret

 

[destriero]

Sorry, it's sacred secret

ofc bc it's fraud.

 

[zdreg]

Take your pills, old man...

Your language betrays your lack of knowledge.

 

[zdreg]

Show us the ticker, tenor, strikes.
$1,000 says you're FOS.

Count me in for another $1000.

 

[rbigsby]

I like to keep this simple. The "worst case scenario" for a Covered Call is the stock going to $0.00. Call premiums do not offset most downward slides in stocks. I have posted this before. I'm not a fan of Buy-Writes in general of single stock names. You take the time and effort to pick a winner, (A symbol you expect will outperform the market and other stocks), but you cap your gains by selling a call that does not really protect your downside. It only offers a small offset toward losses if you are wrong.

if someone owns shares of stock and wants to protect their downside there's something they can use for that. it's called a put. and they buy it not sell it.

 

[Quanto]

if someone owns shares of stock and wants to protect their downside there's something they can use for that. it's called a put. and they buy it not sell it.

That's a very expensive and the worst strategy, IMO