LogFAQs > #949094619

Hmm...

In regards to stocks that have gone down from your purchase price.... if I feel my prior valuation was right, I can wait for it to go back up, like you say. But if I feel like my valuation was wrong, and the new low price is just the new normal for this stock and there's not much hope of recovering my loss....That would normally be the time I just.... sell at a loss.

But covered calls might be the way to recover some or even all of that loss. I could sell at a higher strike price than the current price, and even if it's exercised it would have been better than just exiting at the price I thought it would stay. And if it doesn't get exercised I can just keep selling till break even on the stock at least.

I think I might be in love with covered calls????

That would depend on there being a market of people buying calls at a decent premium though, which might not be the case.

That moon proof strategy is interesting... I think I need to start writing these option strategies down so I can refer to them when I actually might want to use them....and so I don't mess them up.

Do all options go in 100 share clumps?

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