DakkJaniels
DakkJaniels t1_j6nm2nx wrote
Reply to comment by mbr902000 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
lol true
DakkJaniels t1_j6lbeku 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
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.
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?
DakkJaniels t1_j6la6cz 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
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?
DakkJaniels t1_j6l9clf wrote
Reply to 2nd time making a covered call: 1600 shares of Carvana at $8.43. 16 $9 calls sold at 0.71 a call by thisisthetaa
what’s the problem? Your shares might get taken but you should be making money on them.
DakkJaniels t1_j6nm6si wrote
Reply to comment by Weird-Status-287 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
Sounds like a fancy way of just making less money than he would have if he didn't sell the calls lol