Covered call not getting assigned?

Discussion in 'Options' started by ArtOfEngineering, Nov 27, 2020.


  1. You are 100% clueless about covered calls.

    • The premium you collect in most cases will be lower than the gain of being long the stock - so no you will not be rich if 100% of your CC's are exercised.
    • If the stock plunges you are in for the ride down - if the stock rises you are out.
     
    #11     Nov 27, 2020
  2. And you (in this instance) are 100% clueless on how to read a hypothetical (fantasy) post in its context. I know from what you have written you need know education on basic options so I will not explain the maths of how a positive plus a positive equals a bigger positive.

    I was critiquing the lack of knowledge of the threads originator...

    On your points:

    1. I never said 100% excercise made you richer than holding stock, just if you had that improbable scenario I would be rich (all relative). From an education perspective why sell a CC on high flyer unless you want to be taken out. Stock selection is key for CC.

    2. If 100% of CC are exercised you never face this (fantasy), but this is the wish of all buy-write players.
     
    #12     Nov 28, 2020