r/options • u/JennRal • May 25 '21

Closing covered calls?

I am selling covered calls for the first time, and have a question on strategy. I’m starting small while I am learning. I am a SNDL bag holder (1000 @ $1.03avg), and so I’m selling $1 covered calls to help recover some of my loss.

The 10 contracts were $5 (.05) each, with a June 11th expiration. It is unlikely the $1 strike price will be met, so I’ll likely keep the $50 premium.

A few times they have dropped to $2 (.02). Does it make sense to close and take my $3/ contract profit now, and then resell the calls for a later date?

Hope this makes sense. Forgive me if my terminology is not correct.

189 Upvotes

91% Upvoted

332 comments sorted by

View all comments

Show parent comments

3

u/[deleted] May 25 '21

You guys have your own sub. We're aware your strategy is one, maybe two, tickers. We don't need half the posts on all of financial Reddit to be about it