Call Buyers Lose Again- Don't Stop Now!

[JPatrick]

Over the years the figure relating to the number of calls that expire worthless has been about 80 - 88%. That has been my personal experience also.
Once again on this third Friday 80 % of the calls I wrote are worthless.  Of 15 calls I wrote all but 3 will expire worth nada.  The one jewel was NDAQ a great stock I have pontificated on before.
This game ain't all bad.
Corona time  8)





   

 

[wabmester]

So, do the option sale proceeds exceed the upside on the 20% of your stocks that are being called away?

 

[JPatrick]

So, do the option sale proceeds exceed the upside on the 20% of your stocks that are being called away?

The total of all 15 option sales exceed the lost profit on the 20%.
That transaction:::
Cost of stock $7400
Income from 3 calls=$296
Cap gain from sale of stock called $82
Total income from transaction  $378 or a bit over 5% for 32 days

If that stock was held and sold today at the close::
Cost of stock $7400
Sale of stock today $8719
Total profit $1319 0r about 18% for same 32 days.
Yeah, I know, but I removed my rearview mirror some time ago and the crystal ball is acting badly. 

 

[Olav23]

And at the same time, Google OCT 320 calls were $1.70 a few days ago, earnings hit, and those babies were trading at 20$ the next day.

Or, I could just hit the roulette table