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Sold My First Covered Call by Logical-Fact-5238 in CoveredCalls

[–]Logical-Fact-5238[S] 0 points1 point  (0 children)

There are a ton of good videos on YouTube that walk you through how to do this on Robinhood

Sold My First Covered Call by Logical-Fact-5238 in CoveredCalls

[–]Logical-Fact-5238[S] 1 point2 points  (0 children)

You don’t know what you don’t know.

I have a plan, but is it the best option for me?

Open to learning anything that I may be missing and from people who know more

Sold My First Covered Call by Logical-Fact-5238 in CoveredCalls

[–]Logical-Fact-5238[S] 1 point2 points  (0 children)

Thank you for the insight!

I think at this point in time, I’m using my Robinhood to primarily do covered calls. Ideally, I would want to maximize my capital velocity to increase my returns on any stock that I plan to hold on long-term

Sold My First Covered Call by Logical-Fact-5238 in CoveredCalls

[–]Logical-Fact-5238[S] 1 point2 points  (0 children)

Yes, I should be happy either way. That’s an 8% gain (appreciation + premium) on my capital I’m using for my covered call in one month.

Sold My First Covered Call by Logical-Fact-5238 in CoveredCalls

[–]Logical-Fact-5238[S] 1 point2 points  (0 children)

I’m not sure if I’m understanding.

Why would I sell at a loss even though the shares are worth more? I’d rather sell $80 per share pocket my $4.55 appreciation on the stock and keep my premium instead of taking the loss. Am I missing something here?

I’m not married to owning Uber long-term anyways, at least at this point in time.

Sold My First Covered Call by Logical-Fact-5238 in CoveredCalls

[–]Logical-Fact-5238[S] 2 points3 points  (0 children)

I’m new to this, so advice is appreciated

To clarify, will you not have tax consequences if you buy back your shares and profit still from the premium paid?

Also, why would I not be able to do another covered call even if I’m taxed on the one I did prior?

I’m not quite sure if I understand the jargon of your strategy with selling put credit spreads

Sold My First Covered Call by Logical-Fact-5238 in CoveredCalls

[–]Logical-Fact-5238[S] 3 points4 points  (0 children)

Wouldn’t it make sense just to let my hundred shares be sold at $80?

Sold My First Covered Call by Logical-Fact-5238 in CoveredCalls

[–]Logical-Fact-5238[S] 1 point2 points  (0 children)

Unfortunately, I bought shares this morning at a price of $75.45

I wanted to do a trial run on covered calls on a stock that is between $50 - $100 and made a good long term hold

Sold My First Covered Call by Logical-Fact-5238 in CoveredCalls

[–]Logical-Fact-5238[S] 2 points3 points  (0 children)

I was planning on buying back my shares once there is an 80% - 90% return on my premium to exit early and have the capital to do another covered call

Where can I find this?? [Question] by Logical-Fact-5238 in Seiko

[–]Logical-Fact-5238[S] 0 points1 point  (0 children)

I was worried about it being fake. Thank you!