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Old 09-10-2020, 08:41 AM   #21  
New boss = Old boss
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mike734's Avatar
Joined APC: Mar 2005
Position: Ca B737
Posts: 2,749

Originally Posted by Duffman View Post
Covered calls in this environment is a bad game. At best, the stock takes off on a COVID rally tear, gets called away, and you lose profit. At worst, it crashes and you're stuck holding the bag.
I'd like to know why you say this. When you sell the option to open, you have already made 2-4% on that invested money. It doesn't matter if the stock price goes through the roof. Your shares get called away. So what? You've already made your profit for the month. That profit is yours to keep in every scenario. The ONLY risk is that the stock drops in value. You now have a paper loss, only realized if you sell the underlying shares. But if you trade options in quality stocks, you are free to sell options at a lower strike price next month. The company could go bankrupt and the shares could become worthless but that's not likely and you can always sell the shares if you think that is going to happen, just like you would if you held the shares long. How many of us have held on to shares for years at a lower price than we paid? I know I have. Now, at least, I can make some income on those shares while I wait for them to return to profitable prices.

I've been selling options on CSCO for years. Sometimes the shares get called away (In which case my profit for the month is more like 4%) and sometimes the options expire worthless. In both cases I have made income for that option trading period.
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Old 02-18-2021, 07:23 AM   #22  
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Joined APC: Mar 2015
Position: CA CRJ900
Posts: 262

If you are interested in covered calls or options and are looking for a company that provides excellent education send me a PM and I will give you more info.

I have been doing weekly Covered Calls on TSLA and AMZN and making between 1-2.3% each week (Friday to Friday) CC is a small part of my overall trading strategy. Trading has allowed me to take leave and make more money than I was making working.

I am client of the company and have been very impressed. Happy to share more with anyone that is interested.

Last edited by 4myfamily; 02-18-2021 at 07:34 AM.
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