What about If a stock has stayed below your CSP strike price and you only have a small amount of credit left. Do you wait for expiration, or do you roll out for a credit/ or do you close for a profit? It seems risky to wait for expiration for a small remaining credit.
How much below the strike price? If there is profit it would have to be within the discount of the premium I received.If that's the case I would take profit and close and move on to the next trade. I just had that happen with $LUMN
That’s a good point. When a trade has done well, I ask myself if there’s better opportunities, or should I roll out for more credit. I kept rolling out my NEM trade until I took all my risk off the table and kept letting the rest ride.
Do you hold any stocks long-term for covered calls and dividends? Or do you treat everything as a swing trader?
Good play on $NEM,,,If I'm assigned to stock I'll hold I'll hold the stock for capital appreciation and sell CC's to generate icome and reduce my cost basis
What about If a stock has stayed below your CSP strike price and you only have a small amount of credit left. Do you wait for expiration, or do you roll out for a credit/ or do you close for a profit? It seems risky to wait for expiration for a small remaining credit.
How much below the strike price? If there is profit it would have to be within the discount of the premium I received.If that's the case I would take profit and close and move on to the next trade. I just had that happen with $LUMN
That’s a good point. When a trade has done well, I ask myself if there’s better opportunities, or should I roll out for more credit. I kept rolling out my NEM trade until I took all my risk off the table and kept letting the rest ride.
Do you hold any stocks long-term for covered calls and dividends? Or do you treat everything as a swing trader?
Good play on $NEM,,,If I'm assigned to stock I'll hold I'll hold the stock for capital appreciation and sell CC's to generate icome and reduce my cost basis
The Wu Tang shirt made this even better.
Lol...a little nod to Staten Island