$SoFi Technologies (SOFI.US)$ covered calls printing!

Nedinsellian : meaning?

The Real Wojak Nedinsellian : What this means is that even though he’s lost a lot of money on his long position by holding his shares instead of stopping out or taking profits, the covered calls that he sold when the stock was higher are now worth less meaning he can potentially keep the difference by buying them back cheaper at a smaller profit than the equity loss of his shares. Or maybe, best case scenario they expire worthless and he keeps the full premium. However keep it mind that in order for that to happen, the shares would have to fall lower for longer meaning more equity erosion on the shares. Covered calls are dumb asf I always just sell my full position if I think a stock will drop. Why sell calls if you think it’s going down? You don’t make as much back off premiums as what u lose on equity by holding a position large enough to sell calls against in the first place

The Real Wojak : It’s an illusion. The only retail investors who do it are perma-bulls or wanna be hedge funds. This tactic is more for large firms who own hundreds of thousands or millions of shares as a few percentage points is still enough for them to profit immensely because the position size, and they want to hold long for tax purposes. Retail traders really do not benefit from this. I used to sell calls against a $225,000 position in an old biotech I used to be long in and I was only getting like $4,000/month selling 30 day expiries. Maybe got 12-15k profit from selling calls but if I just traded the volatility based on my due diligence then I would’ve made more than $100k profit by trading. I only sold calls because of an upcoming binary FDA decision and didn’t want to miss it. I don’t think Sofi warrants the same level of conviction imo

The Real Wojak : Having liquidity is the retail traders biggest advantage, we can move in and out of trades with full size easily compared to a whale who owns 50M shares. They have less liquidity and so instead of trading their core position they usually lean more towards selling calls and collecting premiums to offset equity losses due to volatility since they can’t easily get in and out without having a significant impact on share price.