Roling covered calls

Discussion in 'Options' started by aplino, Sep 26, 2024.

Can I keep rolling over a covered call "indefinitely"

  1. yes

    4 vote(s)
    66.7%
  2. maybe

    0 vote(s)
    0.0%
  3. no

    2 vote(s)
    33.3%
  1. mervyn

    mervyn

    lol, just look up mstr, it is up at 176, you are rolling still 152.5, how much money you left on the table. if you keep the stock as core holding, at least you roll up the strike slowly with a smaller premium.
     
    #11     Sep 27, 2024
  2. newwurldmn

    newwurldmn

    the worst case scenario is the stock goes to zero.
    A bad case scenario is that the stock goes to 500 and you missed out on those gains if you didn't have the options.

    Are you okay with these two scenarios at the amount of premium you are receiving?

    You can always just sell the stock and put the money in Tbills earning 5% risk free.
     
    #12     Sep 27, 2024
  3. aplino

    aplino

    Very well stated and understood.
    Everything depends on the future price range.
    I appreciate the feedback
     
    #13     Sep 27, 2024
  4. S2007S

    S2007S

    I roll all the time, I'm rolling NVDL for months!

    Mstr is so volatile that I can almost guarantee that it will come in under your sell call and you will collect all premium that you rolled over
     
    #14     Sep 27, 2024
  5. S2007S

    S2007S

    I'm selling many puts on MSTZ at the moment

    Sold puts at 14 and 12 for November!

    This MSTZ will be extremely volatile as it's a 2x of MSTR
     
    #15     Sep 27, 2024
  6. aplino

    aplino

    And just for the record I rolled it over to NOV 15 152 CALL for 16.73 credit.
    Let's see what happens
     
    #16     Sep 27, 2024
  7. S2007S

    S2007S


    When you say you rolled it over for a 16.73 credit what was your last covered call for?

    $1673 credit? I'm sure you bought back the last call for say 15.25 and sold this call for 16.73 for a net credit of $148
     
    #17     Sep 27, 2024
  8. lindq

    lindq

    MSTR will burn you. Don't invest more than you can afford to lose.
     
    #18     Sep 27, 2024
  9. S2007S

    S2007S



    I guess it can burn both up and down since it's attached now to bitcoins movements....

    And if you saw last quarters earnings....

    They were absolute garbage.
     
    #19     Sep 27, 2024
  10. S2007S

    S2007S

    MSTR

    Market cap at 35 billion on revenue of just over 100 million???

    Now that's simply hilarious
     
    #20     Sep 27, 2024