Selling call options in a tough Feb.

A short update this week. This week was a tough week. Last week as the market started to turn and started going down, I decided to buy a few long term call options. These were the call options I bought, most with an expiry date in Jan 2025.

This week, the market continued to go down. While on a whole I am quite confident in the quality of these companies and believe that they will do well in the next 1-2 years, it is still quite painful to see all these call options turning red. At this rate, Feb will not be a good month at all. I also think that the market will continue to struggle in the near term, so I decided to sell a corresponding number of short term call options against the number of call options I have, in order to collect some premium in the meantime. So far these are the call options I sold.

So while I wait for the market and my call options to recover, I will happily collect the premiums which total over $1200 this time. In general I sold options that expire in 2-3 weeks, at around 2 strikes above the strike price of the call option I bought. With this, I believe that even if the prices were to suddenly shoot up, I can close both call options and still make a small profit. If prices continue to decline, I will repeat this strategy when this set of call options expire.