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re: Dedicated Short / Put Thread

Posted on 4/16/21 at 11:00 am to
Posted by RedStickBR
Member since Sep 2009
14577 posts
Posted on 4/16/21 at 11:00 am to
Yeah, going between 10-25% in the money and 1-2 months to expiry, depending on how rich the premiums are and how stretched the run-up looks. This kind of strategy could stop working any time, but it’s been consistent so far. The biggest thing in my view is not getting in too early and waiting for signs of not just deceleration, but actual reversal. I’ve used the same entry rules for all three and they’ve been timely (which could, of course, be nothing more than dumb luck )
Posted by Chucktown_Badger
The banks of the Ashley River
Member since May 2013
31299 posts
Posted on 4/16/21 at 11:23 am to
Sorry for the additional off-topic intrusion, but I feel like you fellas are the right people to ask. I tried to sell two covered calls for my AKBA position. Only 1 one of them filled (I assume that's why there's a -1 there), the other expired, and I just want to make sure I'm reading the numbers correctly and know my options.

I thought that when the option sold I'd get the $25 premium immediately. Was that not the case? Can I sell this covered call before expiration and make money if I want to?

Clearly I'm not super educated on this stuff, so using a clunker of a stock at a lower cost to dip my toe in.

This post was edited on 4/16/21 at 11:24 am
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