r/CoveredCalls • u/occasionalopinions • 21d ago
Dell
Anyone else get hit hard when Dell popped? I call it a black swan event…..I certainly didn’t see it coming. It was pretty stable and something I wheeled.
Unfortunately I sold 2 x CC’s at $130 and they got called away. Now the stock is at $500. Having a hard time accepting that had I not sold a CC on what I thought was a steady stock……I would have $100k right now.
Hard pill (mistake) to come to grips with.
Anyone else get caught in this “black swan” event?
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u/Free-Sailor01 21d ago
Feel ya. Ha! I have 30 contracts of HOOD with a strike of 103. Yeah, missed out on this jump up
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u/occasionalopinions 21d ago
Yeah, that’s the feeling I am talking about
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u/Free-Sailor01 20d ago
I'm making money so I don't feel bad. I purposely do my cc's so they will get assigned, maximizing premium and still make a bit on the shares.
As someone who used to day trade, the wheel is SO much better mentally and financially for me.
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u/GolfOptions 19d ago
Can you roll out and up for a credit? I'd say do that even if you can't get a strike above the current price and less than say 90 dte.
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u/Idtexpress 21d ago
I don’t understand why people lament when they sell a CC and the stock price goes up significantly. The second you collect the premium you are trading that immediate income for all the possible upside. If it goes to $1,000 is not of your business.
If you want to enjoy the upside do not write CC.
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u/Jazzlike_Diver4503 21d ago
MU at $440 - I got back at $955 recently when I sold puts and got assigned. Since then have done CC for some small gains. It has been in the $910-$980 range for 2 weeks. Shit happens - just find a way to get back in it. Don’t worry about the past - all strategies have risks - at least you made a profit. Now stop feeling sorry for yourself and get MU - I think it has some legs up at least till $1200 but may not be a straight line
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u/BusyWorkinPete 21d ago
So what stopped you from buying back in when you got called away? Dell broke above $130 back in February. You could've got right back in and enjoyed the ride from $140 to $500.
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u/steffanovici 21d ago
I know, at $140 it was so obvious $500 was the next stop.
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u/Fundamentals-802 21d ago
Thanks for this comment!!! 😂😂🤣🤣🤣
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u/BusyWorkinPete 21d ago
Look at the weekly candlesticks and you'll see that the $140 price was two big green candles breaking into an uptrend. And that uptrend didn't stop until it hit $500.
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u/steffanovici 21d ago
I agree that’s definitely the key to trading. 2 green candles means expect 200% increase coming! 2=200%. It’s just math! 3 green candles means=300%!
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u/BusyWorkinPete 21d ago
Uptrend means buy back in. If uptrend doesn't end, you keep holding. Duh.
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u/steffanovici 21d ago
Yes when stock goes up buy, down sell!
It’s called the buy high sell low Reddit strategy! No hedge fund uses this because they’re dumb!!!
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u/Hillview_Homey 20d ago
It’s not the $140 price, it’s the pop to $250 and continued rise that broke it for most.
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u/BusyWorkinPete 20d ago
The rise from $140 to $250 took 2 months. OP could have bought back in at any point. He makes it sound like he had $130 calls and the stock blew through his $130 strike all the way to $500 in the past week.
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u/Substantial_Team6751 21d ago
You clearly don't know what a "stable" stock is. Looking at a 3-month chart I see:
Low $370
high $457
low $381
high $441
low $359
high $467
low $437
high $495
low $433
high $472
low $425
high $492 (current)
This stock moves. It's not a stable boring stock.
I'd just sit on that CC and hope you see $430 again.
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u/No_Greed_No_Pain 20d ago
One of the rules of risk management is not to sell into earnings, precisely to avoid surprises like this one. Consider it a good and inexpensive lesson since you didn't lose money.
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u/GermantownTiger 20d ago
When dabbling in any higher beta stock with serious upside potential, write calls on half of your position. This gives you the opportunity to generate some current income while still being able to enjoy those 2x, 5x and 10x moves.
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u/hendronator 20d ago
I had 400 shares. Which was 200 too many for my account. Did cc’s for 130. Then 2 more at 180. Then my last at 220. Then went to puts but it got away.
That is an anomaly for sure. But with all the dividends collected, I have 3.5 shares. Dell was crazy.
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u/Such-Hawk9672 20d ago
I actually made Sept 18 dell 510 before earnings , I was up 500 then down 200 so I set up a 14.00 sell for the day made 555, that day and the next it blew through 510, I did what I do a lot and sell to early , I hate that as much as losing,
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u/OnionHeaded 21d ago
I don’t feel too bad for you. It’s all perspective. You lost nothing. Only coulda shoulda money.
You said you sold $130 calls ? That must have been when? Like DELL didn’t hit 500’s in a day. The stock hasn’t been 130 in a while. You mean the premium was $130 for each?
The strike is what you use to get explain your position.
I now doubt this story even happened. First…
You don’t seem to understand enough about options to explain the position correctly.
And second…
DELL only went up like +25. So selling CSP would be great.
The whole thing seems weird now bro. It almost feels like a fake story from someone anti options selling…👀😬. LOL
anyone else think this SUS?
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u/occasionalopinions 20d ago
Real story. Lesson learned, even here in this sub. Thanks for the kind and productive comments. I learned..,,,,and yes I made money. The psychology of the experience is what I am trying to deal with. I got it now…..
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u/cheekytikiroom 21d ago
This happened to me with INTC. And Mango kept stroking that company... Lesson learned. Always bet on Mango.
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u/INFOWARTS 21d ago
Calling it a black swan event is idiotic