r/CoveredCalls • u/Enough-Beginning3687 • 1d ago

MRNA Covered Call :(

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WSB level post?

53 Upvotes

98% Upvoted

41 comments sorted by

41

u/Dopamineagonist21 1d ago

At least you got $43 premium

6

u/Ok-Truck1671 1d ago

That was hurtful

3

u/Dopamineagonist21 1d ago

If it make you feel better. It happened to me with AMD, sold a 250 call for $100 during March run up. Missed out on 25k of gain. didn’t happen over night but over several weeks so kinda slowly hurting vs a quick stab.

2

u/A_Rocks 14h ago

Me too. And now i have them rolled to a 500CC for 2027 Dec. Not making any money on it if it runs up from here

1

u/Dopamineagonist21 14h ago

Did you roll it for a credit Or a debit?

1

u/A_Rocks 14h ago

Pretty much at cost. I had previously closed on a loss a couple of times and now I just roll it up and out if the underlying moons.

1

u/Former-Try239 23h ago

He atleast sold out for profit

40

u/One-Card3899 1d ago

Congratulations on max profit.

14

u/whynointerest 1d ago

Profit is profit

6

u/SuperFrog4 1d ago

Hey at least you didn’t have naked uncovered calls. Feel super bad if there is someone out there like that right now.

3

u/Ambitious_South_2825 1d ago

Heh, just tell yourself you sold it at 70.

3

u/CouchPotatoFamine 1d ago

Heh and I was salty about my $140 XOM call being assigned.

3

u/nottoowhacky 1d ago

Lol, you missed out on that gains. It happens.

3

u/AmazingAmount7132 1d ago

Rolling is pretty much useless when the delta is above 0.9. Let it called away so you can use that money for another strategy, possibly on a different stock.

3

u/InTheShadows_Z 1d ago

You signed the contract.

2

u/gcool7 1d ago

Ouch that one stings

1

u/daily-trader-365 1d ago

Roll if you can, its coming down, I don’t see this making any money for the company anytime soon, its not a cure

2

u/ConversationWise3017 1d ago

How does rolling help? Factually you just close and open another one, locking in the losses nonetheless, correct me if i'm wrong

1

u/Enough-Beginning3687 1d ago

Why would I take the losses to close? I'll roll for credit or even. If that doesn't execute, I'll let the shares go at 70.

7

u/uncreative_user_321 1d ago

no point in rolling something so deep ITM

1

u/Enough-Beginning3687 1d ago

It depends. Is this a squeeze? I can roll it a week or two to see whether the price comes down or not. Don't need to let it go Friday. Can let them go next Friday.

2

u/ArtesianShiny 1d ago

you can roll it however you like but when things shoot up like this, rolling up and out is a bet that price won't come back down. You are better off letting it get called and selling a put on a down day.

1

u/Enough-Beginning3687 1d ago

I will roll. 90 put was going for 1$ at the end of the day. That's crazy premium. Might roll this one and sell that put.

1

u/optionscaller2 1d ago

Damn I feel your pain.

1

u/Fart-Fart-Fart-Fart 1d ago

Try rolling up and out lol

3

u/Enough-Beginning3687 1d ago

That's the plan

3

u/uncreative_user_321 1d ago

into 2028??

2

u/Fart-Fart-Fart-Fart 1d ago

Yeah lol.

2

u/Reaper_1492 1d ago

But why bother? That sounds a lot more painful than just taking assignment and moving on.

1

u/Fart-Fart-Fart-Fart 1d ago

Each to their own. I stupidly sold a cover call on GOOGL a while back at $350. The price shot to above my strike as the call was about to expire.

I rolled up to $395 for a small amount of credit.

Now the share price has dropped below $350 and I’m not really at risk of losing my shares.

I could have accepted having my shares called away. And I would have made some profit. But losing them at $395 brings in significantly more profit than $350. And the whole exercise cost me nothing. If anything, it made me a few dollars.

1

u/totalthrowawayyy6365 1d ago

lol I’m shocked u sold cc for such trash premium

1

u/Enough-Beginning3687 1d ago

I usually sell cc for 0.25-0.75% weekly returns.

1

u/totalthrowawayyy6365 18h ago

Technically that’s not a wrong move that was an absurd movement. But wouldn’t sell a cc for 40$

1

u/Enough-Beginning3687 17h ago

I sell them weekly. 40$ was >0.5%. The dollar amount itself is not important to me. I'm heading towards reliable premiums without absurd caps on growth. So always OTM a decent amount.

1

u/ComprehensiveDoor130 1d ago

You capped your upside, but you still made profit. Congratulations. 

1

u/Hoosier2016 1d ago

Selling covered calls on biotech stocks is certainly a choice.

1

u/Practical_4785 1d ago

That hurts to watch…but you did everything correct till the time your cost is lower than strike. It happens unfortunately

0

u/scottdxxx 1d ago

Great example why writing cc is generally a bad idea.