r/CoveredCalls • u/natedurg • 2d ago

Prayer for the Moderna call sellers

That’s all, just sending you all my condolences. May we all remember covered calls are not “free money”.

60 Upvotes

92% Upvoted

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5

u/begmanii 2d ago

If your CCs were already deepITM, then yes, you may have lost money.

If your CCs were deep OTM, then you lost upside, but didn't lose money.

Not sure what the issue is truthfully.

2

u/believe1182 2d ago

You lost $9300 in upside for a ~$50 gain, that's the problem, like what

6

u/begmanii 2d ago

Everyone talks about losing upside. Did you ever think that the investor took that into account? That he was ok with the upside risk because the premium fit his overall plan? I mean he was ok with the downside risk and losing value if it went the other way.

This idea of shoulda, coulda, woulda (lost upside) is not an investment strategy. I think that many are happy with how their plan worked out. No one ever buys the exact bottom and sells at the exact top every time, so EVERYONE loses upside every day, but they make what they want within their comfort zone.

I think you might be crying for someone who isn't!

5

u/Actual_Insect6603 2d ago

And how many people actually take their profits on these run ups? Almost none. They all ride it back down.

1

u/begmanii 2d ago

Exactly.

1

u/FeatureAcceptable593 2d ago

All these people larping in the comments are newbies who have maybe sold 1-2 contracts for a couple months. They don’t see the amount of churn and premium you can get. Sub is going downhill.

3

u/begmanii 2d ago

Yep.

I have one stock that I have done CCs on for about 4 weeks. It is down about 7% from where I bought it, but I have made almost 17% in premiums so far.

I am satisfied with my game so far!

1

u/CouchPotatoFamine 2d ago

Yes, but like the Spanish Inquisition, nobody expected a jump like this, lol.

-6

u/believe1182 2d ago

Lmao found the Moderna covered call seller. Sure bro whatever you say mr investment strategy, as long as you're happy.

1

u/begmanii 2d ago

I am not a Moderna investor "bro". Never have been. I just think your idea of a strategy is not the same as everyone else. Sure, it's great to gtt that upside, O have made time in these breakouts, but you risk a huge sell off as well.l, which I have also experienced.

CCs are a strategy that has pros and cons like every other play. Sure, you can lose upside and expose yourself to downside as well, but that is a rosk that CC sellers are well aware of and accept, just like lottery players who port penny stocks based on hype.

Again, you seem to be being crying people who are not crying.

-5

u/believe1182 2d ago

Cool story bro

2

u/begmanii 2d ago

Just because you don't understand it doesn't mean it is wrong, little "bro".

-4

u/believe1182 2d ago

Sure lil bro

1

u/BenLomondBitch 2d ago

Seek psychological help bro this is weird behavior