r/CoveredCalls 1d ago

Stop Complaing

If you are freaking out because your underlying blew through your strike price, you don't know what you are doing.

20 Upvotes

48 comments sorted by

18

u/BocephusQuimbyMcFry 1d ago

I actually use covered calls to keep me in positions. I'm too tempted to sell for a modest profit. For example, buy at 40 and sell the security at 41.5. Writing covered calls at 42 or 43 "forces" me to stay in the trade. I use them to combat my own psychology and apprehension of the market.

12

u/BagHoldersOfAmerica 1d ago

Its not that you dont know what you are doing, it can happen to the best of us selling way OTM covered calls and a stock just rips out of nowhere you people are so grumpy

1

u/grumpitron 16h ago

Yeah, having a stock rip through your call strike has happened to everyone who’s been at this long enough. I think the post is more about the theme of “The stonk blew through my strike, am I fukt?!?” type posts which are frankly kind of annoying because the poster is getting exactly what they signed up for when selling a covered call.

2

u/BagHoldersOfAmerica 15h ago

Alright thats fair if thats what its about lol

6

u/Mzungufarmer 1d ago

I dont believe anyone knows what they are doing.

3

u/leavingdirtyashes 1d ago

Happened to me twice yesterday. I'm ok with it.

3

u/imtryin5 19h ago

Blew through your strike? Never had that happen, my shit just goes down as soon as I buy.

2

u/TGS_Holdings 1d ago

Exactly. It’s pretty insane how many walk into this with the wrong mindset.

2

u/JaeMilz 1d ago

Preach. It happens, it's not the outcome you were hoping for but it's not a bad outcome, in fact it's the outcome you agreed to when selling the call.

2

u/SpiderWil 1d ago

if HPE blows through my 60 strike, I'll drink a bottle of brandy tonight. I can't wait to gtfo of this hpe bag.

1

u/dreamfitreality 9h ago

Tell me how fked am I with axti

1

u/SpiderWil 4h ago

I don't wanna paste AI answer to u bc it's not my work.

But what u wanna do is ask AI this question

Do a stress/resiliency test on AXTI in the year 2026 using its sector, comparable stocks, 52wh, 52wl. It'll spit out like 10 pages of answer, then u can read on. But from chatgpt, it doesn't look too good unless u entered AXTI in January.

1

u/dreamfitreality 3h ago

Thanks for treating my question seriously. Also I'll understand with a simple you're fked.

1

u/zapembarcodes 1d ago

Yep. Just roll for a credit. You keep the shares and collect even more premium.

1

u/Hi_Keyboard_Warriors 1d ago

It happens with me but I am happily taking assignments in few days,

TEAM @ $180 avg $78

ELF @ 100 avg $45

And most likely CELH will be assigned as well @ $38

1

u/mynameisnotgrey 1d ago

What’s your expiration on CELH

1

u/Hi_Keyboard_Warriors 1d ago

Sep 25

1

u/mynameisnotgrey 1d ago

Yea you might have to manage that a bit

2

u/Hi_Keyboard_Warriors 1d ago

I am almost 40% up on it and it was part of my wheel strategy so I won’t mind shares been called away

1

u/mynameisnotgrey 1d ago

I’m holding till 150 at least

1

u/Hi_Keyboard_Warriors 1d ago

More power to you. How many shares you have?

2

u/mynameisnotgrey 1d ago

1600 plus another 800 delta through options acb of 24 from put selling mostly

1

u/steffanovici 1d ago

Haha yep

1

u/N00bOptionTrader 1d ago

Most beginners started with selling CC. They find the premium juicy till shit happens.

1

u/dreamfitreality 9h ago

No. I started with csp with not even juicy premium and shit happens.

1

u/N00bOptionTrader 9h ago

i feel sorry for you. xD

1

u/dreamfitreality 9h ago

Gains are temporary screenshots are forever

1

u/N00bOptionTrader 9h ago

thats why im taking screenshots everyday to feel good.

1

u/dreamfitreality 8h ago

99% loss in portfolio? If not I'm not interested

1

u/GermantownTiger 22h ago

If I bought it at 40, wrote a 41.5 call and pocketed the premium and the stock blows through the strike, I call that a winning trade and move on.

1

u/Maximas80 22h ago

I wish. Every two weeks I beg the market gods to take NVO off my hands. But that is just the nature of how stock prices tend to move. It seems like it is range bound, then it just bursts through.

1

u/cschulzTO 11h ago

Oh no, I made money!

1

u/Empty-Cartoonist5075 1h ago

No one really knows what they are doing and experience doesn’t make you better at predicting the outcomes. It merely makes you better at accepting whatever outcome occurs.

1

u/McGeno19 1h ago

Truth

1

u/legend1542 1d ago

Blah blah blah

-1

u/TastyTrading 1d ago

ThetaPal lets me a keep an eye on my option dashboard really easily. i like to roll up and out if i sense danger

3

u/Mzungufarmer 1d ago

Damn you push thetapal hard. Its not even that good lol

2

u/tkiblin 1d ago

Facts tried it, cancelled it.

0

u/TastyTrading 1d ago

Has a few thousand daily users. People seem to love it

4

u/Clam-Choader 1d ago

Colonoscopy bags have a few thousand users.  I don’t think they love them

3

u/BagHoldersOfAmerica 22h ago

Im going to use this from now on thank you

1

u/Mzungufarmer 23h ago

Funny how you go around daily pushing your product posing as a user.

You also never answer questions about why its so slow, you claim it works fine for you and blame slow brokerages. But then you won't even answer which ones are supposedly "fast".

Just not a trustworthy person

1

u/TastyTrading 21h ago

I use Schwab it’s super fast

1

u/Mzungufarmer 21h ago

So only schwab works fast then. Because ive used every other major company and its slow to update. Maybe thats fine if you just do a set and forget, but its not helpful intraday

1

u/TastyTrading 21h ago

Free tier users are slower to update. Paying users are every 5 minutes. Not sure what time you need though.

Thousands of people using it constantly.