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SoggyBottom commented on a stock · Feb 1, 2022 09:15

Covered Calls

$AMC Entertainment(AMC.US)$ Many people got into AMC when it was in the Single Digits last year and sold A LOT at Highs and made INSANE Profits! We got our Original Capital out Plus the Huge Profits ASAP (as you should with ANY STOCK)!
Now all the Shares you own SHOULD be all Completely FREE now!
With those remaining (Free) Shares, you’re Smart so you sold Covered Calls to keep the Money coming in on a Steady basis no matter what the stock price does!
Always gotta have strategies in place to have Income coming in all the time without spending a Penny or losing any Shares!
- Say you sold the Feb 18 $20 Calls in mid Dec, you would have collected $1,505 in Premium PER contract!
You can either buy them back at your particular PT (whatever that may be) or HOPE they expire Worthless so you can keep the entire amount!
But I find that to be too Risky!! i usually buy them back once I hit my PT OR if the stock starts an Upward Trend, I’ll buy them back before they gain Value!
Yesterday (01/31), they hit a Low of $39! That would have been a perfect time to buy them back!      $1,505 - $39 = $1,466 Profit!
But many people own Hundreds or Thousands of Shares so say you sold (10) Of those Cov. Calls and sold them and bought them back the same time as above……. That’s a nice $14,660 Profit.
You didn’t spend a Penny and you most likely didn’t lose any Shares as well. So hopefully, that was a Free $14,660 in Profit?
Covered Calls
Covered Calls
Covered Calls
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  • 超Ape : Ok .

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  • DumpTheMoneyAMC : These highly operational apes don't understand. They only buy and hold, and don't understand what hedging is. As a result, each of them loses a lot of 🤣🤣 in amc, and then they say options can't touch 🤭.

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  • SoggyBottom OP 超Ape : Let me guess…….. You bought a lot of shares very cheap but didn’t sell ANY AT ALL even when you were up 1,000%? 🤦🤦🤦

    A little advice after 31 years in the market…….. ALWAYS ALWAYS Lock in “some” Profit when up in Profit! Don’t belong to a team of Apes and follow what they do!! 90% of them are Noobs following everyone else!

    Last Jan 2021, AMC was around $2 per share! So you purchased 1,000 shares ($2,000). If you didn’t start selling a little here and a little there the whole time it kept rising, you’re a FOOL!
    It hit $20 within a week or 2.
    Rule #1 in investing…. ALWAYS get your original Capital out ASAP along with some Profit!

    So, when it hit $20 per share, you should have DEF Sold 1/2 of your Shares (who cares if the stock kept going up)!

    Now, you sold 500 shares at $20 each = $10,000 total.
    - you got All your money back ($2,000 plus made $8,000 Profit).
    You now own 500 Shares (which are COMPLETELY FREE TO YOU)!
    If the stock fell to $0, it would NOT AFFECT YOU WHATSOEVER because you already Profited!

    But AMC kept rising, so you sold some more here and there all the way up to $72 per Share in June 2021.
    By then, maybe you have 300 shares left? Sell 200 at $70 per share = $14,000 (FREE PROFIT)!

    But hopefully you Hedged and sold a lot of Puts during that time frame and just kept collecting FREE PREMIUM (Extra Income)!
    You may have made another $25,000 - $60,000 in Profit just from selling Puts!

    But I have a feeling that you didn’t sell a single Share even when you were up in Profit because other Gorillas (I mean Rats) shoot, I meant Raccoons kept telling you “DONT SELL”

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  • SoggyBottom OP DumpTheMoneyAMC : Have NO CLUE WHAT YOU WROTE

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  • DumpTheMoneyAMC SoggyBottom OP : These high skill sell option， apes don’t understand, they only buy and hold, they don’t understand what hedging is, and as a result, each of them lost a lot in amc🤣🤣 and then said that options cannot be touched🤭

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  • Win All Money SoggyBottom OP : [undefined][undefined][undefined]

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SoggyBottom
- Market Investor since 1992. - Options Trader (8) Years - Crypto Trader/Hodler (2014 - Present)
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