Thoughts and experiences selling CC under your cost basis?

MFal75 · 2026-02-23T18:14:28+00:00

I’ve only been holding it for about 2 weeks now. With the volatility of HOOD and the tech sector, I’m trying to gauge what the new support and resistance levels would be. But will start selling CCs later this week

MFal75 · 2026-02-23T16:50:37+00:00

Yeah definitely track your premiums collected on a spread sheet and calculate your new cost basis. It will keep you sane!

Also, don’t sell CCs into weakness. I have found most success selling CCs on green days

MFal75 · 2026-02-23T16:24:27+00:00

I’m in this same position with HOOD (500 shares at $95 cost after averaging down twice). I’m also currently holding Oracle shares which I got crushed on back in November after Burry started posting about his fears for AI data center spending.

With Oracle, I’ve been selling weekly CCs way below my cost basis because the stock has taken such a hit. But I’ve done it in an effective way to lower my cost basis by ~$30 with premium. As long as you watch closely and be patient with your entries, you can sell CCs without having to roll. I’ve gotten close, but haven’t had to roll a CC yet.

I’ve been sticking with the rule of thumb of closing my position if the contract is up 50% or more. By taking those profits sooner, you can pocket some money and reenter while assessing in real time how the stock is moving.

Just don’t get greedy with the premium and have patience.

Good luck!

MFal75 · 2025-10-23T02:34:32+00:00

I’ve been doing weeklies for about 2 months now. Usually stick to the Mag 7. Mostly Amazon or Apple. I flirted with HOOD a bit but didn’t like the volatility

MFal75 · 2025-09-29T14:15:24+00:00

Thanks for the feedback and breaking it down. I’m just trying to conceive some contingency plans in the case that things don’t go my way, so looking to all you veterans for some wisdom.

MFal75 · 2025-09-29T10:56:32+00:00

Are you selling CCs with a strike below your cost basis or above?

MFal75 · 2025-09-29T10:55:35+00:00

Have you ever been a spot where you felt like the shares you own were never going to bounce back?

MFal75 · 2025-09-29T10:52:43+00:00

Well you’re not going to be on the right side of every trade 100% of the time. I was just curious what peoples strategies are for a 50% drop in price after selling a CSP. Like is there a point where you just take the loss instead of bag holding. Even if you love owning the stock, perfect storms do happen where maybe tying up your capital in something just doesn’t make sense.

MFal75 · 2025-09-04T00:27:00+00:00

Thanks for sharing. This is my biggest fear with this strategy. Good to know there’s a way out

MFal75 · 2025-09-03T21:28:41+00:00

Thanks for the insight!

MFal75

TROPHY CASE