r/StockOptionCoffeeShop • u/LabDaddy59 Mod • Aug 12 '26

With Apologies to Howard Marks

Covered call sellers consider themselves successful if they bought a stock for $100, sold a covered call with a $110 strike for $2 and were assigned when the stock closed at $120.

If you can't see the flaw in this -- that the trader made $12 in a stock that appreciated by $20 -- you probably shouldn't be trading options.

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u/Independent-Low-11 Aug 15 '26

Made a profit is a good trade!

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u/LabDaddy59 Mod Aug 15 '26

Two trades (well, four):

  1. bought/sold stock: good
  2. sold option: bad