CrazyRichAggie said:
Esteban du Plantier said:
Prognightmare said:
wanderer said:
10/16 calls update. Obviously a rough day with that afternoon dump.
Getting close to needing more time with some of these.
I'm not in those and I didn't rec them so take this with a grain of salt. If this stalemate persists, the 10/16 expiry will not give enough time to hit those targets. JMO
I sold some premium against mine in closer, some higher calls to offset.
Newbie question, but what does it mean to "sell premium"?
I sold calls with closer expiration, expecting that they'll expire worthless and I can use that to offset the cost I paid on my longer duration calls.
You can call it a calendar spread, or poor man's covered call.
Works well when you buy long duration calls in low volatility and sell in high volatility, could potentially completely cover your long calls with sold premium.
My NOV GILD calls were $1.40 when I bought and I sold the weekly call for $1.05, so my net price on the package is $.35. If the close call expires worthless, then I'll still make money on the longer one.