fuzzballl 7:14 am on Friday, October 22, 2021
Tags: CoveredCalls ( 2,200 )

SNAP

Going to be #CoveredCalls – Sold SNAP OCT 29 2021 60.0 Calls @ 1.72

parrothead11 7:18 am on Friday, October 22, 2021

I’m going to be assigned also if I don’t roll. I typically follow Tastytrade method of rolling instead of taking assignment and starting covered calls. Have you found it more beneficial to go with covered calls? TYIA
- fuzzballl 7:31 am on Friday, October 22, 2021
  
  I usually take the stock and I’m pretty aggressive with my covered call selling even if it’s under my basis a little. I’ve found that if the stock gets called away then for a small loss it usually means it’s starting to recover or at least form a base and can be a good time to start selling puts again to eventually get back to even.
  
  Really all works out the same in the long run probably. If the stock is in a margin account you could also sell calls or call spreads against the short puts but that is riskier.
  
  In the long run I probably would have made a lot more just taking assignment and doing nothing but holding the stock. I’ve got a few stories like this:
  
  Got assigned 600 shares of SOXL at 90 pre-split. Aggressively sold calls and got out with a small profit. Stock then went on to well over 600. Ouch.
  - rictor821 7:47 am on Friday, October 22, 2021
    
    For another opinion, I usually try my best to avoid taking stock. In my PM account. 100 shares of SNAP at the current price requires 3 times as much margin (currently $1701) as being short an ATM put ($557). Obviously this will change quite a bit based on where you were assigned and brokers can choose to change it any time they want.
    
    I believe the positions are synthetic equivalents, but I like the lower margin requirements of puts vs. owning the shares.
- fuzzballl 8:17 am on Friday, October 22, 2021
  
  I guess what we’re saying is “it depends” Lol