01-08-2021, 05:08 PM
(01-08-2021, 04:12 PM)john Wrote: My "speculative" option play
Bought some NIO at 50 to hold a few weeks ago and have been "wheeling" options on some,
Going to have some called away today at $51 so I sold a put for 1/15 $50 strike .80 premium.
Fenders, Mike what would you have done same thing^^ or rolled call forward?
I sold my 1st put ever on NIO when it had its ipo went from $9 to 3ish~ I didnt know what i was doing and sold it after a few months of never moving smh
A. I don't follow NIO.
B. It's not a dividend stock, see A, above.
C. Regardless of what some might say, a Covered Call is a bullish trade and YOU WANT them called away. That is the objective of the trade, sometimes, some get cold feet when it is about to be called away. The time to make the decision, IMO, is when you initiate the trade.
D. I don't roll, see C, above.
E. That's a pretty good premium on a put that far away, so for me that's a good trade. Since premiums are pretty fat in NIO, why sell the call so close if you wanted to hold the stock? I don't know when you entered but looking at the chart, the obvious price points to sell the call, IMO, was around the Nov highs of 57.00. If it takes out 57 and you bought at 50 and got a good call premium... I'd love that every week!