05-21-2021, 04:01 PM
(05-21-2021, 03:14 PM)ChadR Wrote: Sold a call option on T today in my wife's ROTH account. 30.50 for 5/28/21. Not a great premium, but if it gets called, not too worried about it. Got busy and forgot to also do this in my ROTH account too.It's tough to get a good premium on T unless the market is really volatile. It's also the reason why it's easy to avoid get exercised 85% of the time. It adds up at the end of the year if you get a few boring stocks in the rotation. I get a new favorite every six months or so but the trick can work for a long time in the same stock. HRL has been easy money for a long time as it moves just enough over the course of a few months to keep both put and call sells working around a long position.
On the down side I have been losing about 100 shares a week of this or that on a covered call exercise. Sometimes I don't care, sometimes I'm kicking myself. Can't defend them all. It also tempers my losses during a rough down week and I don't have the energy to figure out if it's good or bad overall. It would be inconclusive analysis anyway as it's all about general market direction over the course of a few months.