11-04-2021, 02:43 PM
The XOM trade was fine IMO. Selling calls on XOM worked for years. We never know. I sold XOM puts the past few weeks on dips. Over time the less volatile stocks work out. It's a percentage of successful trades game.
The QCOM trade was awful. Not because it didn't work out, but the risk reward was never their. For about 1/3% premium you forfeited the right to any real upside on the earnings announcement. Had it fallen 10% instead you were insulated from only 1/3%. Still bad option sell. Something further out in duration and strike might have been better. Hard to protect yourself from a 10%+ move.
Don't give up but maybe stick with some lower potential stocks that won't break your heart until you get some repetitions in. This gets easier with time.
The QCOM trade was awful. Not because it didn't work out, but the risk reward was never their. For about 1/3% premium you forfeited the right to any real upside on the earnings announcement. Had it fallen 10% instead you were insulated from only 1/3%. Still bad option sell. Something further out in duration and strike might have been better. Hard to protect yourself from a 10%+ move.
Don't give up but maybe stick with some lower potential stocks that won't break your heart until you get some repetitions in. This gets easier with time.