Option gone wrong....Ahhhh!

Ok, there have been posts here about how some people are regularly pulling in huge option premiums compared to what is generally expected.
This, is the other side of the coin. If you are going to learn options, you also should know there is still no crystal ball here either.

Cloudflare (NET) - Covered call with strike of $53. Now sitting at a market price of $59.

I can tell you I did NOT make $6 in premium. This was a poor decision based mostly on being bored. I got just under 2%. What happened here was that NET was not making any big moves after the post earnings collapse. Since it had not moved much, I decided I could squeeze out a few pennies.

Other than Wall Street upgrades, I have NO information on why the stock went on a tear this week. They did have some product release news, but that doesn’t change the story from ‘why’ they dropped from the earnings news.

I tried twice to roll it, because I don’t believe this will hold in the short term. It’s too bad I couldn’t time the volatility, so this one is going to be called away.

Am I panicking? Am I upset and going to throw in the towel on option? I mean, I could focus on losing out on many hundreds of dollars in stock appreciation, vs what my option premium was…

But…I didn’t get to roll, and I still believe the price will come back down a bit. So, I will take the overall price of shares at $53, which is a bit of profit. That money will be shuffled around in my port, with the “cost” basis I have returned to NET when it drops again.

ps…at least this “mistake” was on only half my position, so that is one way I hedge my risk.

pps…yep, so it happens, be ready for it, and DO NOT MORTGAGE YOUR HOUSE to play in the options world.

PPPS…Ok, putting my high horse back in the barn for now.