DakkJaniels t1_j6lasjd wrote
Reply to comment by thisisthetaa in 2nd time making a covered call: 1600 shares of Carvana at $8.43. 16 $9 calls sold at 0.71 a call by thisisthetaa
Why would you rather pay money for an option to buy it back, rather than letting it expire worthless? Yeah, I get closing out the position from a risk standpoint if they were OTM, but why are you selling covered calls if you want to buy them back when they are in the money?
thisisthetaa OP t1_j6lb6c3 wrote
wait hold on if it’s 8.99 it’s out of the money and by expiration all that would be left for the most part is the intrinsic value. I was just going along with your scenario. Correct me if I’m wrong.
DakkJaniels t1_j6lbeku wrote
Yes, I don’t understand why you want your covered calls to be ITM. Being slightly OTM is the best scenario, you keep the premium and the stock.
mbr902000 t1_j6lrdjm wrote
You dont want to keep this stock 😆
DakkJaniels t1_j6nm2nx wrote
lol true
[deleted] t1_j6levq2 wrote
[removed]
Weird-Status-287 t1_j6n1ler wrote
Is OP trying to get fancy with buying and selling things to make a little more than he could by just selling now?
DakkJaniels t1_j6nm6si wrote
Sounds like a fancy way of just making less money than he would have if he didn't sell the calls lol
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