NRD09 said:So here's what I don't understand about this strategy: selling covered calls limits your upside, which is the last thing I want to do with pharma/bio. Your shares could get called away tomorrow at 2.5 and it could keep running. I get the idea of guaranteed returns but CODX went 5x+ almost overnight. That puts us over $6. Do I just need to get over the fomo and focus on guaranteed returns?topher06 said:If I get called out on my 1/3 of shares, I am going to have a large glass of nice scotch. Not going to be upset with ~67% gain (between share appreciation and option premium).FishrCoAg said:
Did similar 2 weeks ago when he first mentioned, only I sold August 2.50c for about 30% of original investment. Best to roll them out further on the current spike, or hold on and hope to either get called out or sell them again?
EDIT: Realistically, the stock will probably give up some of these gains and there is still some work to do to get over $2.50. Guess we will see, doubt anyone in this thread is going to be disappointed if it is at $2.50 tomorrow and we all just have to wait for the options to expire.
To be fair, my main statement initially on this trade was if people had otherwise sidelined money then don't just let it sit there doing nothing when you have the ability to take risk almost to zero but have reward at 100%+.
That said we have a lot of novice traders on here and when you can show them how to use options to crush a 90 day CD ROI then it gives them the ability to build their account safely.
