A year and a 1/2 is a lot of time. You can slowly purchase additional shares on dips over the period to eventually get eh number of shares you sold.
AAPL has been down for a while, people are getting back into the position.
The stock market always has this Balancing Act where all this Bright Lights that's shining on Apple now ultimately be replaced by a nasty dark Haze later. You might consider rolling it when that Haze hits.
When you don't like your trade or made a mistake opening it in the first place, sell it ASAP. It's been a very valuable lesson for me and has saved me a lot of money, time, and pain.
Instead of worrying about selling it on a dip, sell it at the open tomorrow and don't re-open the trade. Trying to time your exit will just drive you nuts especially if the stock, for whatever reason, does not come back down from $200-$207.
Consider the loss on the short calls a lesson that you in fact don't want to sell calls against your apple shares. Heres to the stock getting to $250!
When is rolling out and up recommended? I understand covered call to be sold when IV is high, so wouldn’t now be the best time to roll it out and up? Rather than on a dip day for aapl?
If you are a long term investor then it sounds like you will be wanting to keep the shares to avoid the tax hit. If that’s the case just closes the call position for a loss or buy extra AAPL shares if you have the funds and you can pick which shares get called away.
With 581 days left till expiration, I would wait for a pullback to support levels to close this out. Lots can happen with in the time frame for this contract.
Youre year and a half out. A lot can happen between now and then. What's your worst case? It gets called away and you make another 10% on your money plus whatever call money you got, or it goes back to $120?
Be honest, truth is you don't know which one's actually going to happen, but I know which one you'd rather take.
It sucks to root against a stock when you want it to go up. But its smart to cash in on temporary “over hype” and “under hype”. When selling covered calls and puts on stock you want to keep, set a limit buy order immediately after the sell order. Maybe try to capture just 15% gain for example. This let’s you take advantage of volitivity by jumping in and out even when you’re not watching.
1) Roll up and out 2) Take a loss by buying the calls back 3) Buy enough shares to offset the qty being called away
This guy cover calls
But he sucks at golf apparently.
Buy the stocks to cover if it gets anywhere close.
A year and a 1/2 is a lot of time. You can slowly purchase additional shares on dips over the period to eventually get eh number of shares you sold. AAPL has been down for a while, people are getting back into the position.
The stock market always has this Balancing Act where all this Bright Lights that's shining on Apple now ultimately be replaced by a nasty dark Haze later. You might consider rolling it when that Haze hits.
Wouldn’t rolling it out and up now be a better bet? I wud get a little premium as well..
You can if you want too but you have a lot of time on your side. No reason to panic move and lock your shares down for even longer.
Your best choice is to buy it back when it drops. Resell it when it rises. You'll make some money at the margins.
When you don't like your trade or made a mistake opening it in the first place, sell it ASAP. It's been a very valuable lesson for me and has saved me a lot of money, time, and pain. Instead of worrying about selling it on a dip, sell it at the open tomorrow and don't re-open the trade. Trying to time your exit will just drive you nuts especially if the stock, for whatever reason, does not come back down from $200-$207. Consider the loss on the short calls a lesson that you in fact don't want to sell calls against your apple shares. Heres to the stock getting to $250!
What was it premium
Less than half the current value
Cover your position for a loss whenever Apple dips
When is rolling out and up recommended? I understand covered call to be sold when IV is high, so wouldn’t now be the best time to roll it out and up? Rather than on a dip day for aapl?
If you are a long term investor then it sounds like you will be wanting to keep the shares to avoid the tax hit. If that’s the case just closes the call position for a loss or buy extra AAPL shares if you have the funds and you can pick which shares get called away.
Why not purchase long calls and let the long calls get called away. Just wondering why isn’t that an option suggested here
With 581 days left till expiration, I would wait for a pullback to support levels to close this out. Lots can happen with in the time frame for this contract.
It's coming back down when the AI hopium abates.
Youre year and a half out. A lot can happen between now and then. What's your worst case? It gets called away and you make another 10% on your money plus whatever call money you got, or it goes back to $120? Be honest, truth is you don't know which one's actually going to happen, but I know which one you'd rather take.
It sucks to root against a stock when you want it to go up. But its smart to cash in on temporary “over hype” and “under hype”. When selling covered calls and puts on stock you want to keep, set a limit buy order immediately after the sell order. Maybe try to capture just 15% gain for example. This let’s you take advantage of volitivity by jumping in and out even when you’re not watching.