02-27-2019, 01:31 AM
(02-26-2019, 10:27 PM)fenders53 Wrote: Here is an example of patience paying off when you sell a call on a stock you don't wish to sell, but are just trying to boost income.
Wasn't your number one rule not to sell a put in a company you don't want to own? Isn't selling a call in a company you don't want to get rid off kinda the same thing?
But I have my own trades to criticize too hehe. ACB ran up 10% in the past two days. This stock moves lightning fast so anything is possible but I'm just saying that going long would have given me 10% in 2 days instead of the 2.85% in 5 days that I'm looking at now. And I still have 3 days of risk to absorb as closing the position early doesn't really seem to work with this one. (and this is one of those stocks where a 10% drop in a day is very much possible)
A more regular trade: covered call play with WBA
Went in at $71.36. Sold a $72 call for 8th of March.