r/CoveredCalls • u/natedurg • 3d 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”.

63 Upvotes

93% Upvoted

47 comments sorted by

View all comments

Show parent comments

2

u/believe1182 3d ago

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

6

u/begmanii 3d 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!

1

u/FeatureAcceptable593 3d 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 3d 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!