Like the title says I’m planning on selling calls on my shares to produce some extra money to buy deep in the money calls on other companies I have conviction in. Here are my options and perhaps you guys can give some ideas.
Sell $1,650 calls expiring December 16, 2022 and the premium is $6,000 last I checked.
-This gives me the chance to buy calls in severely sold companies that I like.
I’m planning on selling some Tesla Shares before the year is over anyways to buy a property, and $1,650 is a more than perfect price. Anything below is fine because I keep the premium and possibly make money on the options bought with that premium.
Risks: Stock Split. If the stock does in fact split then it will rally a ton and I’d have left money on the table because of the premium spike in the contracts.
We go into a recession and the share price gets cut significantly which by then the premium won’t even be a fraction of the loss on the underlying.
Thoughts?
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