Nov '24 Profit/ Loss sharing #2
A new learning experience.
I bought $Archer Aviation (ACHR.US)$ just to practice option trading. So today I learned how to roll a covered call.
This particular contract expires in 14 days with a strike price of 3.5 (I bought is at 3.06, and the market price at the time of creating the CC was 3.1).
Reacting to a piece of good news today, the stock price rose, and the pre-market transactions shows that It might exceed the breakeven price, so I decided to use this opportunity to do a 'rollover' as a first hand experience (I don't mind letting this stock be called away, but then I would not have the opportunity to do the exercise). It was quite technical, so it took me some time to comprehend and ultimately complete the task.
Not long after the market opened, the transaction was done.
I found out that this is called a diagonal spread . Can't make sense of this name yet, but it will come...
Happy to have this experience.
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I'm a casual investor from Malaysia, learning, diversifying, and taking charge of my retirement funds.
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104063221 : great idea to practice options using low cost stock. limits the impact of mistakes made
XIAOSU LIU RIST : I want to learn it too , but still not understand . I will read again and again what u post , thanks for share CNNT