Betting against the man, doesn't always go well

Investing Strategies Options - You Make the Call
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Been running a weekly covered call on SoFi to get a bit of extra profit on a smallish positition that wasn’t doing much at all for last few months.

Well, I also am not sure I want to keep it anyway as I stay away from the ‘banking’ sector when it comes to investing. I wasn’t that worried about earnings coming up.

But…this is a reminder to not expect options to always go the way you want. In this case, I need to now convince myself to NOT chase the money. I wanted out at a bit above my investment cost, and the current option got me there.

They post really good numbers, a surprise, and now the stock is running today. Do I panic and try to stay in?!? Do I worry about “all the money I left on the table”? Nope. I had a plan, my plan was to make a bit and then get out. I have other stocks that are more in my wheelhouse long term.

We’ll see how this goes by the end of the week.

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Well … there are three options:

  1. Do nothing. You’re out, and there are tons of other stocks to follow and “play” with.
  2. Wait till SoFi goes down again, buy it, and restart the weekly call selling.
  3. Or perhaps best of all, start selling [weekly] puts at a strike price attractive to you. They will likely keep expiring worthless for a while, but at some point, when the stock drops, you might get to buy them at your chosen price. Then begin the weekly call selling again.
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LOL…all those things. :slight_smile: I just see people freaking out about ‘lost money’ and ’ i could’a should’a’…It happens, be ready for it and stick to the plan.

But yes, puts are probably great option (punny) since I’ll have the cash until it needs to go somewhere else. (I am working in a Roth and have no margin.)

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For weekly covered call strategy, I always look at the profit per week. I have learned, never to look at lost opportunity cost at all (worthless endeavor).

You bought it to make X% in a week and that is it. Let it go if is ITM. If it expires worthless, that is the best option so you can write it again. Let them give you more free money. You can always buy back or sell puts. Your choice.

Did the same thing on UPST and I had to accept that I made 4% on my money in 1 week instead of 28% had I just held and sold without using a CC.

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