Normal
CC's are great!My solution to getting caught in a strong upward trending stock and going in the money on my sold call is to firstly admit that I am a fool for partaking in such a stupid trade, once I do this and stop crying and pull myself together I consult the charts closely and sell the stock at or near the peak (takes skill, but acheivable). This means you go naked (takes balls and confidence to this, amateurs should never do this if they dont understand the consequences) and then as the stock falls back you either buy the stock back or close out the sold call position. If you cant sleep at night knowing that you are naked then you can buy some cheap protection (buy high strike call to cover sold position).
CC's are great!
My solution to getting caught in a strong upward trending stock and going in the money on my sold call is to firstly admit that I am a fool for partaking in such a stupid trade, once I do this and stop crying and pull myself together I consult the charts closely and sell the stock at or near the peak (takes skill, but acheivable). This means you go naked (takes balls and confidence to this, amateurs should never do this if they dont understand the consequences) and then as the stock falls back you either buy the stock back or close out the sold call position. If you cant sleep at night knowing that you are naked then you can buy some cheap protection (buy high strike call to cover sold position).
Hello and welcome to Aussie Stock Forums!
To gain full access you must register. Registration is free and takes only a few seconds to complete.
Already a member? Log in here.
