fuzzballl 10:14 am on Thursday, March 24, 2022
Tags: CoveredCalls ( 2,200 )

ARKK

#CoveredCalls – Been selling below basis for awhile now. Will probably let the stock go tomorrow so starting a new ladder to continue the recovery.

Sold ARKK APR 14 2022 65.0 Put @ 3.30

geewhiz112 10:33 am on Thursday, March 24, 2022

I’m no Noah so I am staying out after my submersion. Best of luck on the “cruise”
- fuzzballl 11:02 am on Thursday, March 24, 2022
  
  My “recovery” program for a crappy position. Sometimes it works sometimes doing nothing would be better. LOL
  
  1. Stock gets assigned from a put sale and is massively underwater.
  2. Aggressively sell covered calls (in the money if the stock continues dropping).
  3. Continue this until stock begins to recover.
  4. At some point calls will be too far ITM to roll.
  5. At that point let stock go at a loss.
  6. By now stock should be near a bottom so begin new put sale campaign to complete the recovery.
  7. If stock gets assigned from recovery put sales begin call selling again with original loss rolled into new basis for tracking purposes.
  
  Whole thing is kind of a pain but if I’ve stayed small it seems to work a lot of the time and recovery is quicker than doing nothing but waiting.
  - MikeL 11:21 am on Thursday, March 24, 2022
    
    It would be nice to remove the pain from this process. 🙂
    Way too much pain already 🙂
    - fuzzballl 11:31 am on Thursday, March 24, 2022
      
      Haha true. At least for me, staying small helps dull the pain a little. For example on this position I’m willing to go max 5 contracts. Initially assigned on 2 and added another during the selloff. Now that I’ve entered the “put selling after stock called away” part of the process I’m willing to go to 5 which will really help the new adjusted basis.
  - geewhiz112 11:40 am on Thursday, March 24, 2022
    
    I’ve been doing similar remediation, but during the quick downturns I have so many rolls going on I feel like a baker. At least I have learned great skills from you and all the other terrific bistroites.