Love/hate relationship with triple witching hour...

Discussion in 'Options' started by Cabin111, Mar 17, 2023.

  1. Cabin111

    Cabin111

    I do covered calls mostly. I hate when a favorite stock gets called away in the last hour. But, I love when one that I thought would get called away, drops and is still in my portfolio.

    Yeah, I know I can do a "buy to close", clear it off the books...Trade for another day. I just hate giving up those few cents/dollars that may not be necessary!! Cheapskate here...

    What I really hate is the last hour...The wild swings. Trying to do things manually, it's like catching a falling knife. After the trade (in the last hour), many times I'll say..."That's not what I was trying to do"!!

    I feel like a day trader...Which is the last thing I want to be. No offense...Don't have the cojones!!
     
    stochastix likes this.
  2. Yeah I feel ya...But to me, getting called is a win. At least for that trade! Just take the win and:

    [​IMG]
     
  3. qlai

    qlai

    So why do you even watch it if there’s no decision needed to be made? Bordom?
     
  4. TheDawn

    TheDawn

    Yeah I know what you are saying. That's why they call it the "witching hour"; everything is crazy like it's bewitched. Lately though everything always ends up going up at the very last half an hour. What I really hate is you can't do anything about it cuz you never know where the price is going to land.
     
  5. Cabin111

    Cabin111

    About one in ten (that are close to ATM) I will buy back, if I really believe in the company. I need to have a strong conviction, because I don't want to wait the 30-31 days to get back into it (many times at a higher price)...
     
  6. qlai

    qlai

    So you are saying that you will sometimes take a loss on your short call just to keep the shares?
     
  7. Cabin111

    Cabin111

    Usually they are cover calls. I'll buy the stock, say for $99. (100 shares). I'll then do a leap for the $100. a year out. But if I like the company (and it has a good market share and P/E), I'll do a leap for say the $120...Less money, but not wanting to lose the stock.

    Qlai, Yeah, I will take a small loss ($5-10.) to protect my shares...But I need to have a strong belief in the company, P/E under 30, holding/gaining market share, good dividend...Things like that.

    The opposite of a day trader...A boring, value investor.
     
    qlai likes this.