VBIN's oil stock thread.

[fenders53]

(01-19-2021, 02:44 AM)vbin Wrote:

(01-18-2021, 09:08 AM)fenders53 Wrote:

(01-17-2021, 07:40 PM)vbin Wrote:

(01-15-2021, 12:20 PM)fenders53 Wrote: VBIN

Do you try to generate extra income with your energy stocks.  I would definitely do that with a portion.  I realize you are underwater on some of your shares.  You could risk losing some shares if you sold a covered call or two.  I do that with some of my stocks I expect to recover slowly or be stagnant.  When it makes sense surrounding a core position with a covered put and a call often works well over time.  I got blown up on WELL and a few others when I bought right before Covid.  My basis is now way lower if you factor in income, while the stock plods along gradually higher.  High premiums and not so tough to roll forward when needed for more premium.  I highly don't recommend this for good growth stocks.  You'll lose your shares and kick yourself.

Oh man I tried that with XOM and it worked pretty well till November when it ran up and 2 of my calls were ITM. I rolled them forward and they are still ITM with the recent run up. I plan to roll them forward again.

So not doing it with the rest positions. I simply took some profits on other positions( choppy markets can a be signal for tops) Though I believe this is the start of oil recovery and it will go long way.

It tends to work better when I stagger them.  No need to have three contracts sold all at once.  Also need to wait for a stock to come off the bottom if it is severely beaten down.  Doesn't work nearly as well when the VIX is low either.  Tough call when or if to start.

Yeah that was stupid of me to be greedy for pennies when XOM was at lows. Lesson Learned.