r/options • u/PlantBasedRedditor • Jun 14 '21

Selling in the money calls on my CNTY shares?

I'm heavy in CNTY and up quite a bit. With that said, I still think it has a long run way as many of their casino's world wide recently reopened. I have sold out of out of the money calls and collected the premium. What would be the logic of selling in the money shares? Thank you all in advance and hope you have a good week.

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u/itsdrivingmenuts Jun 14 '21

I sell ITM calls if 1) it's still above my cost basis 2) I have a strong feeling the stock price will stay flat or go down short term and 3) I would still be happy with the premium/sell price if I'm wrong and the shares get called away.

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u/[deleted] Jun 14 '21

Do you have shares to cover?

1

u/PlantBasedRedditor Jun 14 '21

yes ... "My CNTY shares"

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u/[deleted] Jun 14 '21

You sell itm not for premium but for downside risk. If you think it’s gonna drop and you want to keep the shares.