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  1. #1
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    Apple Covered Call

    I sold the August 14 call at the 420 strike early today for $940.00 in premium. The expiration date is after earnings so there is assignment risk. If the stock falls further would you buy to close at $400.00 or $500.00 or wait hoping the stock price stays lower and let time decay make the call cheaper to buy?

  2. Official Lip Ripper' haftafish22's Avatar
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    #2
    So I haven’t sold in covered calls yet, but with options I’m learning to take profits when profits are there. That ol pigs get slaughtered saying comes to mind... you trade enough to know to set targets. Just my opinion.

  3. Stocks/Investments Moderator boneil's Avatar
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    #3
    You did really good on that price/timing.

    At the end of the day they were trading at 575, so your already up significantly, $365. Gonna be alot more this morning, and you're gonna gain roughly $20 per day for the theta decay.

    You can't go wrong with whatever you do. Probably be up 50% this morning. It would be difficult to not cover this morning on a gap down
    Thanos was the hero

  4. #4
    I think it comes down to are you comfortable selling your position at $420 or are you wanting to hold it longer? If your comfortable selling at $420 I would ride it out and then once it expires resell another.

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    #5
    I chickened out and closed it out buying a call at 2.48. Earnings are next Friday and I think they could be good so just going to sit on the sidelines.

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    #6
    When it closed at $371 today, I was thinking you were safe with the $420 option.

    However, good earnings may make it jump in the next few weeks.

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    #7
    Quote Originally Posted by Charles Prestridge View Post
    When it closed at $371 today, I was thinking you were safe with the $420 option.

    However, good earnings may make it jump in the next few weeks.
    Yeah I covered earlier in the day before it started falling. Good timing on the entry and bad timing on the exit. I may wait until after earnings to sell another. I made some decent money but definitely picked a bad time to close it out.

  8. Member
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    #8
    You did great by covering last week. Your prediction of a jump after earnings was perfect.

  9. Member
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    #9
    Quote Originally Posted by Charles Prestridge View Post
    You did great by covering last week. Your prediction of a jump after earnings was perfect.
    Even a blind squirrel gets a nut once in awhile