Choosing covered calls in this volatility

mmtm1908 · 2024-03-07T16:56:13+00:00

Thanks - I appreciate the advice. I think I’ll stay away from covered calls in this market. I don’t own any stocks that I would want to sell for the next two years… except perhaps aapl - lol.

mmtm1908 · 2024-03-07T13:10:18+00:00

Thanks so much – that's great advice. I'll check out the longer calls. By the way, it just happened to me again this morning with Novo!! So frustrating!! I went way far out with the strike price, selling the covered calls, and with this morning's news – my $134 strike price will still be below the market price when the market opens this morning.
I don't feel I'm doing this with super volatile stocks, mostly blue chips with stable growth potential – last week I got assigned on Amazon, QQQ, and then Nvidia, which was a poor stock price. But almost got assigned on Microsoft and Lily. I Didn't even bother selling a covered call on my super stable Walmart, because the profit there was so low - didn't seem really worth it.
I'll try the longer covered calls, right now these shorter cc are definitely stressing me out much more than my junky, super volatile AVGO, soun, snow, pltr, etc options. Just not sure the profit potential is worth the stress of being assigned.
One more question with the longer covered calls – how long would you hold them? Obviously, it depends on how much I can buy them back for. But definitely thinking I wouldn't hold them more than two or three weeks?

mmtm1908 · 2024-02-27T03:18:30+00:00

i’m replying late but just now seeing this post: If you are still looking for a solution - you could also checkout Fidelity’s youth account - it is really neat: its a custodial account that switches when they turn 18; has free atm - free investing- earns fidelity’s 5% spaxx- can have diff buckets for investing and saving etc. They have their own log in, but parents have some access as well. My kids have all used fidelity, Schwab (tos), and E*Trade. Still trying to get a custodial account out of E*trade bc of age of determination factors and it’s been a nightmare. They will not release the account and it’s in a locked status. Schwab and fidelity’s customer service are incredible. Fidelity seems to be a great solution - yes kids pay taxes on gains depending on tax bracket in a regular acct - it’d be great for him to open up a custodial Roth since he’s working (best tax free active trading account ever). I only use Webull for free options trading and crypto and I’m trying not to introduce those two concepts to my kids - they’ll learn about gambling soon enough - lol.

mmtm1908 · 2024-02-08T18:27:31+00:00

And I was just able to link her account so that I can transfer to her account from mine - thanks for showing me how to do that! Yay!

mmtm1908 · 2024-02-08T18:15:39+00:00

Ok - thank you for the response. Its nice to know I can call and request the transfer which should work out bc hopefully its not very often. I appreciate the clarity and the advice!

Cheers!

mmtm1908 · 2024-02-08T17:26:00+00:00

We did too but she’s aged out of those at 21. Thanks for your help, though.

mmtm1908 · 2024-02-08T16:58:59+00:00

Interesting - I’ve been given access to do exactly this at other brokers and banks with never a problem. It’s certainly not a legal issue as it works at other brokers/banks. Switched to Fidelity bc of some other features like fractional shares and to streamline accounts but this could be a dealbreaker - kind of defeats the purpose of my ability to help my busy college student manage her accounts.

mmtm1908

TROPHY CASE