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Down 50%: How To Sell Covered Calls On Losing Stocks

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Down 50%: How To Sell Covered Calls On Losing Stocks
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Опубликовано:

22 авг 2024

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Комментарии : 76

@jjbuckner Год назад

🚀 JOIN My Private Discord For All My Options Trades, Real-Time Stock Purchases and Portfolio Updates, Private Live Streams as well as a community of like minded investors: www.patreon.com/jj_buckner 📝 Learn How To Make $1,000+ Every Month Selling Options (Use code: OPTIONS for 50% off!): averagemoney.teachable.com/

@suthamm 3 месяца назад

I look at it this way, covered call strategy is when you have a neutral to slightly bullish view on the underlying stock. If the stock was hit and started rolling down, I would be out of the CC position along with the stock. Holding on to the covered call position just because you don't want to see the red on the P/L is like picking pennies in front of a stream roller.

@ssing7113 Месяц назад

Some subtle things If it rolls to next year. Cost basis needs to factor in tax you paid on the short term call premium..

@johnt697 7 месяцев назад

If you are really bearish on the stock because of some negative event and now you expect the stock to drop even more, it is not really worth it to try to roll, or repair this trade. You are better off selling ATM options to get the biggest premium and then let it get taken away so you can have a clean slate. You will also free up your capital for the next trade. But its best to do this immediately, and not let the stock drop even more. This works best after you have been assigned shares after selling puts. Again I am saying this would be something to do , if you really have become bearish on this stock, and think it will continue to drop.

@gray9735 Год назад

I don’t mind selling calls below my basis. If the underlying goes above my strike price I will just roll the option up and out. Pretty chill

@jjbuckner Год назад

Absolutely!

@christophertaylor3150 8 месяцев назад

This can be difficult on some stocks.

@Btouhy1 2 месяца назад

@@christophertaylor3150why

@darrensteves Год назад

Thank you! Great subject that needs to be covered! I love your Rule never right covered calls below avg cost. If I want to keep my buying power requirement low, and in that situation I just I close all trades in that underlying at 15-21 DTE and just sell a Put which is one of my rules. I keep an annual log and only do that if I am still bullish and believe the stock price will increase. If IV is low i do a PMCC.

@bravocortez4087 10 дней назад

I’m new to options and this happened to me. I was already doing this before I watched your video so it’s reassuring to know that I am thinking the same way as you are. I only wish brokerages would adjust cost basis according to premium collected for said stock. You just gained a follower.

@1gumbah 5 месяцев назад

If your loosing sell otm cc on position to dollar average down

@JayDKB 2 дня назад

CELH is one that did me like this $90 to $40 but my cost basis is $57 because I sold bunch of OTM csps before getting assigned. I'm long on it but will probably get out when it hits my cost basis

@TheSkatereel Год назад

I think the bigger risk here is that since it’s down so big in short amount of time, it can skyrocket pretty quick on any positive news and thus any covered calls with strike prices closer to market value, will get exercised. Average cost seems to be a sunk cost and not so relevant. If they get called away from even a low delta strike price, then so be it. It’s more than likely going to cool down and you can just back in.

@jjbuckner Год назад

That could happen but also could not… All just depends on your risk tolerance.

@bufoot19 Год назад

happening to me right now with MPW. released news about selling assets in AUS and price jumps 10%. I'm sure it will come back down but most likely not by tomorrow when my cc's expire

@mattlovercamp5618 Год назад

Very good video JJ. It also depends on your platform. I use Charles Schwab and have recently starting to do options. I did my first call and saw that it automatically changed my cost basis after I received my premium. Something I really like about C.S.

@-mr3puttz-310 Год назад

anyone know where to find a free online cost basis page to keep a running total? not a 1 time calc. not a spreadsheet.

@paulbelisle7213 18 дней назад

A share here a share there? What about brokerage fees?

@CEASEless01 Год назад

Great video thanks. There's thousands of vids on covered calls but this is like the only one I've seen pertaining to a losing stock. I'm also down on a stock I'm comfortable holding. What do you think of selling a CC with a much farther out expiration instead of just 30days? With the intent of buying to close before expiration on any further significant loses on said stock.

@ihtfp004 Месяц назад

You’re a bag holder if the CC position goes against you. You MUST take action like making it a risk reversal before you get to a point where the hole you need to dig yourself out of is too big.

@FindingProfits Год назад

Been doing this with AMC for a few years, where it's paid for all the AMC shares I own plus additional profits. Great video.

@billestep6804 Год назад

Just sell a call credit spread against your shares. Easier to roll up. Or if it rallies you only lose the spread width.

@nicholasbento3257 Год назад

bought 100 shares of BAC right before the banks started tanking lol, CC premium, dividends, and DCA (buying like 5 shares a week) is my current strategy

@jjbuckner Год назад

It happens to the best of us lol. I’d say that sounds like a solid strategy to me.

@AngieStonesPhD 2 месяца назад

Thanks, just what I needed today since am worried to fall below 25,000 on RH and my Amz shares dropped a lot yesterday. :) Thanks.

@MrGorgefla 11 месяцев назад

This is gold here. It might be down but you are not out.

@CalmerThanYouAre1 Год назад

Great video! This is stuff everyone needs to know before they ever start trading options. It’s not a matter of if but when you’re eventually in this position, especially if you’re trading volatile, low market cap companies. Another good strategy is selling 2-3X the number of calls for the shares you own and buying 1-2x of the calls at a higher strike price. It’s a combo CC and call credit spread. Defined risk and you’ll bring the cost basis down a lot faster. You just have to be conservative and tactical writing the spreads. And always remember rule #1… only trade stocks you’d be comfortable holding long!

@JC-io8pv 4 месяца назад

Ok , questions if you lower by putting more can you keep lowering to almost average cost ?

@scrubs9998 5 месяцев назад

What a difference a year makes, PLTR is now selling at $23.49. I hope you held on to those shares. My average share price is 16.72, so I just keep writing calls.

@stevensaxon8888 Год назад

I own 100 shares of wkhs @4.44/share. Now it's @ $1.30/share. Any suggestions for me?

@travismartinson1813 Год назад

Sell a $1 call and be done with it, get a better stock or maybe SPLG etf so you don't lose like 70%.

@km6731 Год назад

put it in the filing cabinet and stop looking at it. Put new money somewhere else. Today is a new day.

@zenzei_305 7 месяцев назад

What about selling calls OTM and grab premium while at same time selling puts with cash available and collect on the other side too? Is that called a Straddle?

@jenniemurphy695 3 месяца назад

I would like some help with some more details. I have an example today!

@dedysetiadi2851 Месяц назад

You shirt say Kahala CrossFit? You from Hawaii?

@steveh7407 Год назад

Excellent vid - this just happened to me with DPST. To me, Options is a game of Patience with a bit of chess. I rolled up and out to recover part of my loss and I will roll out again near expiry to hopefully recapture the balance of the original loss and maybe a little gain. And I will continue to write covered calls on my shares of DPST until the premiums collected eventually pay for my original DPST stock purchase. After the stock has paid for itself, it's free money.

@johnt697 7 месяцев назад

That's a dangerous game you play.. So how did DPST end up? I see the stock did recover since your post, so maybe you got away with a profit.

@charlescziryak1118 8 месяцев назад

any thoughts on selling covered calls on WBA

@lennyd1313 4 месяца назад

Thanks Double J

@evelynm2530 Год назад

use weekly calls

@xinlin2000 Месяц назад

hope you still have palantir stock by now. . because they are 28 now as today July 21. you are on 2X profit. I was enjoy and funny while watch your video, if owning stock is down 50% that is sad..

@igo0di Год назад

Awesome video!! Thanks, man!

@dfrg0026 9 месяцев назад

Not sure you did a video yet on this. What is your advice when your stock blows past your covered call strike price?

@gptinsights 8 месяцев назад

if you want to keep the shares buy the calls back. else let them assign but you miss out on the rally

@entertainmentinternational1087 6 месяцев назад

I have done writing cc below average if it broke support.. and at ur 300 shares too easy to average down...

@particles343 8 месяцев назад

A lot of people buy protective puts just in case. I do have problems with stops not triggering though.

@philipbissiwu4346 2 месяца назад

Nobody is okay holding a stock and is down 50?

@maxlebow7373 4 месяца назад

yes - Walgreen Boots - happening to me

@davidbailey9394 Год назад

Roll ur CC to avoid assignment, Its that simple.

@jjbuckner Год назад

Yes, I know.

@janice7958 Год назад

If you roll it, don't u take the loss right there?

@zubairahmed762 8 месяцев назад

do you only get assigned near to expiration or at expiration?

@christopherjasso Год назад

Great Video on some good strategies.. at this time im watching ... PLTR is WAY Up... so i hope you either averaged down and/or held.. cuz you are in the GREEN now bro!

@laurelharper123 7 месяцев назад

Concluding 2023 with a 20% decline in the S&P 500, long-term investors find a promising entry into 2024. Noteworthy ETFs include: $VOO for S&P 500, $VTI for total US market, $QQQ for tech growth, and $SCHD for growth with dividends. Calculating my annual dividends, I'm thankful for $167k-attributing it to discipline and focus.

@maryHenokNft 7 месяцев назад

Off course, but Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.

@hunter-bourke21 7 месяцев назад

Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.

@maggysterling33254 7 месяцев назад

@@hunter-bourke21 I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.

@hunter-bourke21 7 месяцев назад

Much credit goes to *Camille Alicia Garcia* for her significant contributions. She maintains an online presence, making it easy to locate her. While other advisors might pose challenges to find, Julia has proven to be an excellent mentor throughout the year.

@TheresaAnderson-kf5xw 7 месяцев назад

Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Camille.

@anad44 Год назад

I sell calls below my cost, but have $ to buy if in the money at the end of the week.

@alex.sand1r 4 месяца назад

I hope you're still holding your PLTR sha, es bro.

@djayjp 11 месяцев назад

Other option: buy to close at a loss.

@bibbidi_bobbidi_boob Год назад

It was up recently so assuming you sold lol - thanks!

@CalmerThanYouAre1 10 месяцев назад

Writing CCs below your cost basis… AKA dancing with the devil! 👹 Definitely not a move for rookie traders or traders without nerves of steel at any level! 😂

@Austinsinvesting Год назад

I’d sell the $9.5 a month out and just roll it up and out if you needed

@Heart4KidsNonProfit Год назад

Thats me!!

@MeanDaGreenScreenBra 10 месяцев назад

Thought I was hallucinating it, but nope you're wearing a Kahala Cross Fit shirt. Haha I live like 5 minutes away from that place. You from Hawaii or something?