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unresolved-madness t1_j6l946n wrote

WSB future mod material...

17

DakkJaniels t1_j6l9clf wrote

what’s the problem? Your shares might get taken but you should be making money on them.

9

thisisthetaa OP t1_j6l9myw wrote

well people are saying the company is going bankrupt. I just hope it can hold out above $9 until Friday at 4

−7

DakkJaniels t1_j6la6cz wrote

wouldn’t you rather it go to 8.99 so you keep the premium and the shares? Also, “at least you are in the money”? Why would you want your covered calls to be in the money?

14

thisisthetaa OP t1_j6lai6g wrote

no because the first thing I hope to do if that scenario plays out is to buy back the call just before expiry and get rid of the shares instantly anyway like it’s a hot potato.

−8

DakkJaniels t1_j6lasjd wrote

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?

6

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.

−8

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.

6

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?

1

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

2

Severe_Set5371 t1_j6las1f wrote

Worst thing is your shares will get called away for 9 bucks, you bought them less then that. You make will make money.

7

thisisthetaa OP t1_j6lb9ly wrote

what if it falls to like $6 and I have a huge unrealized loss

−1

LionRoars87 t1_j6lm9wc wrote

Welcome to the risk of covered calls. This is options man.

4

thebossphoenix t1_j6mkppy wrote

Just call questrade and ask them to reverse the trade, mention you have regrets

4

rodsterStewart t1_j6mqnva wrote

If it falls to 6, then you keep your 1600 shares and you keep selling covered calls until you get assigned.

You seem to be confused about what your play is and you're the one who made the fucking play. Keep up the good work.

3

icepremez t1_j6le032 wrote

What? U collect ur premium then. Ur holding the stock either way till exp. Is that not the play????

1

JitsISM t1_j6le2dp wrote

You made money on the premium of the options you sold. The point of selling covered calls is to make money when a stock isn’t doing well and you want to hold onto it. If they expire in the money you sell your shares for the strike price. You have the safest form of selling an option. Relax.

1

Abandonedinternally t1_j6m2fqj wrote

Are you kidding me? And more importantly are all you people replying smart and caring?? Need I remind you where you are! How dare you come here, post gains and ask how bad you are?! Worst case you lose your shares but at $9 per share. The fact that you sold covered calls to protect your minute investment should get you banned! Let alone showing it off saying you did bad! I was looking for a real regarded play and got some guy complaining he’s down less on his calls he sold then the money he made buying the stock. He’s making money and concerned? Get out of here

3

VisualMod t1_j6l8v96 wrote

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1

sgplourde t1_j6lc2t1 wrote

I'm glad my wife didn't pick you for a boyfriend. I'm feeling good right now. 👍

1

Shiftybidnes t1_j6la0vd wrote

Put in am order to sell the shares and buy back the calls at the same time if ur worried. It will close the whole position

1

thisisthetaa OP t1_j6larh2 wrote

so basically I buy the option back for $2656 and sell the shares for a gain of $2,512 and my profit fees aside is the premium I sold for less $144?

That’s actually not that bad

−2

LionRoars87 t1_j6lm6r2 wrote

Covered call on meme stock?

1

JackWolfbanger t1_j6lxiec wrote

Long Stock + Short Call = Short Put

Think of it as you basically sold a 9 strike put that expires Feb 3rd. So you are correct that if the stock tanks you’ll take a beating. Your hope is you can sell more calls to lower your basis, but if CVNA really drops there won’t be calls you can sell without the risk of a rally calling your stock away and you locking in a loss.

1

Fibocrypto t1_j6m2nxg wrote

This is a perfect example of over trading .

1

AppleParasol t1_j6mcfqv wrote

Ur not fucked per say, but you’re not going to make any money, even if you “make money” it’s not going to be anything worth actually doing these options. If it goes tits up you’ll miss out on massive gains. If it goes down, you’ll lose slightly less than you would just owning shares, but still not worth while.

0