- 2,830
- 3,148
Time to recharge my monthly CCs up and down most of my portfolio. Here is the strategy I think I am crystalizing on:
Go to each position and think to myself, at what strike would I probably want to take profits on this stock anyways?
Then I aim a bit higher and that is the strike I focus in on.
Then I go into the option chain and look at what premium I'll get for the monthly at that strike and since I got a month to go I'll set my premium way above current asking and just make it good until canceled and wait for the stock to pop sometime in the future to hit that premium.
Too much in the recent past I asked for a slightly higher premium then current market, only to see it moon way past that the very same day. How much higher to set my limit premium is the question, I'm thinking something ridiculous for now like double current market or double current ask on each contract. I've seen shit like TRIT, CCIV, and others triple like hours after i've cold CCs on it so why not?
I know I bitch about losing shares to CCs, but I think this strategy maybe best for me. I can't do puts because I don't hold cash. Holding CCs gives me guaranteed premium OR guaranteed sales of the stock at a much higher price which is beyond the price i'd be happy to sell anyways. It also takes away the stress of watching a volatile stock rise up and paper handing a too soon sale. How can I be pissed at myself for selling high strikes for double the original (start of month) premium? If they don't hit, then oh well, I still am holding the stock to fight the next battle with.
I think selling monthlies is good because as people mentioned the volume is better and also it gives time for my "good until canceled" piggish premiums to hit. I don't have time for shitty premiums cluttering up my positions screens anyways.
Does all this sound logical?
(and as far as PLTR which I've vowed to diamond hands, I am thinking...thinking maybe set them for the HIGHEST strike possible so that shit never hits- but then watch it hit. Still thinking about this one. I've held these shares since IPO and been thinking of all that premium I could of made since then. But I sure as HELL don't want to lose those shares until at least long term gains hits at the one year mark. I dunno jury is still out , but you fuck up when you don't follow the plan, and the plan was buy the shares and forget about them until they send you to the promised land).
As always, I type all this shit out for mine and your benefit. Its good to hear different thought processes.
Go to each position and think to myself, at what strike would I probably want to take profits on this stock anyways?
Then I aim a bit higher and that is the strike I focus in on.
Then I go into the option chain and look at what premium I'll get for the monthly at that strike and since I got a month to go I'll set my premium way above current asking and just make it good until canceled and wait for the stock to pop sometime in the future to hit that premium.
Too much in the recent past I asked for a slightly higher premium then current market, only to see it moon way past that the very same day. How much higher to set my limit premium is the question, I'm thinking something ridiculous for now like double current market or double current ask on each contract. I've seen shit like TRIT, CCIV, and others triple like hours after i've cold CCs on it so why not?
I know I bitch about losing shares to CCs, but I think this strategy maybe best for me. I can't do puts because I don't hold cash. Holding CCs gives me guaranteed premium OR guaranteed sales of the stock at a much higher price which is beyond the price i'd be happy to sell anyways. It also takes away the stress of watching a volatile stock rise up and paper handing a too soon sale. How can I be pissed at myself for selling high strikes for double the original (start of month) premium? If they don't hit, then oh well, I still am holding the stock to fight the next battle with.
I think selling monthlies is good because as people mentioned the volume is better and also it gives time for my "good until canceled" piggish premiums to hit. I don't have time for shitty premiums cluttering up my positions screens anyways.
Does all this sound logical?
(and as far as PLTR which I've vowed to diamond hands, I am thinking...thinking maybe set them for the HIGHEST strike possible so that shit never hits- but then watch it hit. Still thinking about this one. I've held these shares since IPO and been thinking of all that premium I could of made since then. But I sure as HELL don't want to lose those shares until at least long term gains hits at the one year mark. I dunno jury is still out , but you fuck up when you don't follow the plan, and the plan was buy the shares and forget about them until they send you to the promised land).
As always, I type all this shit out for mine and your benefit. Its good to hear different thought processes.
