I've been buying long (1/19/25) calls on CCL, JBLU, NIO, PYPL, TSLA, etc. My CCL is up big already and I still have a year. My JBLU is finally coming back to even. I'm down on TSLA and PYPL, but feel good for the next year. I loved rolling, it's a great way to stay in the game. Great video!
Had to do this on Friday with Riot. Had the 12 call and roll it forward and up for another $70 in premiums. Need to do the same with Clsk soon because I really sold calls at the wrong price before the shares rocketed 😅 thanks for all the info and congrats on your new lease on life too. Happy holidays 🎉
Hi Brad. What do you find as far as the most profitable time to roll? Prior to going ITM? As its going ITM? After it has gone ITM? Wait till exp date? Make sure you do it before stock flattens off? Etc? I've got my own theories but would love to hear yours.
Every situation is really different. Generally the closer to expiration the better. But there’s risk with that becuase the closer the expiration the more likelyhood it could be assigned.
Hello Brad, I'm fairly new to options trading and watched some of your videos. Thank for taking the time to explain the ins and outs in such a clear and simple way. I noticed your spreadsheet in the early part of this video and am wondering what you use for a journal. Is it one you purchased or one that you made.
Not sure if you have made a video on this or even if it would interest you, but figured I'd bring it up. When (or If I guess) are there situations where you might decide to simply close the covered call and let the underlying stock run a bit before setting up the next covered call? Using for example your AMZN play. Obviously hindsight allows us to more easily see this, but if you are having to roll an option every weekly (like back on 11/3-11/10) would you consider instead simply closing the covered call. Giving the stock a little time to run then resume selling at the higher strike? While I can understand this sounds a lot like "timing" the market, but to me, if you have to roll and roll and roll (especially on weeklies and especially if that is how the market in general is running) - you may be better off just letting it move up a few dollars and then resume.
When the underlying stock is increasing, closing and holding is risky because you pay a lot to close (more than you sold the calls for originally), and if the stock stops climbing after you close, you wont be able to sell more calls for higher than you closed. However if the stock is falling, and you can close for 1c or 2c per option, then you can try holding until it starts climbing again.
So if the CC is near expiration and is close to the money can you close it for a profit? I sometimes see the break even at a higher price, so sure you push it out and increase the strike but you may not be growing the account...I had to roll NVDA to March btw, it turned into a rocketship.
Waited to Friday to roll and my beloved Amazon shares ducked down below my strike price. Bought the shares at the exact right time and Amazon has been very good to me. Will write more Monday.
what do you think about it: selling put stock X at strike 100 and short selling (sell stop) stock X at same strike. You must handling only the situation when price goes at strike and then come back. What do you think? ty
The problem with rolling is that if the underlying trend keeps going against you in the long term, you have to roll again and again and again and pray that eventually you will come out as a winner but it can sometimes take years and it can significally increase the position and the required capital to keep on rolling as well as the collateral needed. In theory you can roll forever and statistically you have to come out as a winner eventually but the amount of bagholding and patience it requires is immense.
Nope. No more collateral needed. The collateral is the shares in a fall. And cash in a put. So actually by rolling a put, it requires less collateral 🤔
Hi Brad, what do you think about this: covered call deep into the money with exp. date end of 2025, cannot be rolled at this time but can it be transformed into some other type of option trading? ( ex. iron condor or similar )?
Great video, as always. Important skill! I see that once you roll an option, you immediately writes the premium that you got from the roll in the `Net Premium` column. Isn't it a bit cheating yourself? Doesn't it makes more sense to set the `Net Premium` only after the trade is officially closed? Since a lot of your trades are rolled probably see the `Net Premium` sum bounces up and down all month long.
You can setup the excel sheet so it has both 'credit received' and 'closing costs', the closing costs will be determined when it is bought back or expires which will then form the net premium
Isn't it easier to click the (Roll this option button) and then change the price or date? The video would be less confusing to people who just started options.
Are you sure? Isn't that why it is sell to open and buy to close on the expiration date?I had a covered call that recently went over strike price early in the week, but by week's end was below the strike price and was wondering what would happen@@BradFinn This is all new to me so I'm learning as I go!
I am curious to know how much is the farthest out you have rolled out so far for a net credit in your options selling career due to stock ripping up way too high unexpectedly. Just curious to gauge the worst case scenario before I try this out. I would assume a few months out perhaps?
@@BradFinn yes I did briefly notice the 2025 sell call but since it wasn't elaborated upon in the early part of the video, I wanted to double confirm with you. Thanks!
Nvda went to the moon a couple months ago. I had to roll out 2.5 yrs, and they are still in the money. Nowi have to wait till sept when they release more dates so i can roll out another year. But that is rare cause it went to the moon. Dont do covered calls with stocks you dont want to hold long term.
So like what’s your rate of return? No offense but I remember watching some of your videos a long time ago when I first started exploring options. My conclusion was that options are useful for hedging purposes (like when you want to limit exposure on something until it reaches long term capital gains) or maybe for a bit of added premium when you are starting to incrementally close a position at a price you like. Quite frankly my opinion is that anyone who constantly pushes options as a “hack” to investing more or less is clueless or a grifter. So like do you have any content on your rate of return or risk adjusted rate of return using these strategies? Cause otherwise I’m getting grifter vibes…
Christmas came early for me. I sold a covered call on Lowes, strike $202.50 expiration 11/17/23. On Friday 11/17, LOW was trading above $203 most of the day. It closed above $203. Surprisingly, I was never assigned. I got to keep my shares. Strange that some bot for a brokerage wouldn't just exercise the option and make basically a free $50 bucks or so.
Depends on how much he paid for the contract. If he paid $1 per share than it wouldn’t make sense for him to exercise it. The other person likely just sold for a small loss unless they’re bullish on lowes
Ok, so my cost is 212, strike was at 217.5 but the stock blew past this. If I’m ok with losing the shares & only taking the profit from 212 to $217.5 I can just let them take the shares right?
I never let the options exercise because with my broker, i pay large fees for that. Its cheaper to buy back the options for peanuts prior to market close on expiration date and then sell the underlying if thats what you want to do. Basically exercise them yourself to save the higher fees.
Ouch. I wouldnt want a covered call stock tied up for a year out expiration...just to make a couple hundred dollars extra. Sometimes it's OK to just buy it back at a small loss, and write another weekly or monthly covered call.
