05-17-2020, 12:33 PM
(05-17-2020, 10:59 AM)fenders53 Wrote: Did you miss the part that I am dumping the shares first, then immediately selling a new put a few bucks (or whatever) cheaper? There are no new shares. The same 100 I had (per contract obviously), unless the stock runs as I then incorrectly called the bottom. I'm not averaging down a dog with additional new shares.
What's your exit strategy? Just sell it and run? I definitely do that sometimes if it makes sense.
And BTW I didn't know DAL was a sure dog at the time.
On speculative trades, yes. If it runs too far against me, I buy the put back (for a loss). I never get married to any of those underlyings.
If the put is sold for better entry on a stock which I like, I'll try to sell a covered call if the premium is acceptable. If the premium is too low, I will just sit on it and collect dividends.
I actually opened a new taxable account where I will be selling puts and covered calls in KO only, with all profits going to buy more KO shares.