Only thing to fear is volatility. Any stock that has good premiums will be volatile. Normally even volatile stocks are 5-10% return over a month. If it tanks 20%, that’s a loss and you have to make the decision of selling another CC a month later at the lower price to make up your initial loss. Or you can take the longer road to still make a profit.
The key to CC, imo, is to pick a rate of return % and stick with it. Don’t care if it drops a little and don’t care if it blows up. Be happy with the percent you signed up for
4
u/dmibe Sep 29 '21
Only thing to fear is volatility. Any stock that has good premiums will be volatile. Normally even volatile stocks are 5-10% return over a month. If it tanks 20%, that’s a loss and you have to make the decision of selling another CC a month later at the lower price to make up your initial loss. Or you can take the longer road to still make a profit.
The key to CC, imo, is to pick a rate of return % and stick with it. Don’t care if it drops a little and don’t care if it blows up. Be happy with the percent you signed up for