Quote (Thor123422 @ 27 Nov 2020 13:55)
Current strategyy
Buy a stock I expect to go up in next 6-12 months
Sell covered calls for the following week/month >10% above my basis, so worst case scenario is that I get assigned and make a 10% profit + money from selling the call
Then use the money from the covered call to make small day trades when the stock dips, and buy back the call I sold at a lower price when it dips for a double gain while I'm waiting for the long-term appreciation. This limits downside and maximizes up side.
Only way I lose is if the whole stock goes tits up, which I'm doing my research on to ensure can't really happen in that time frame.
Mostly pharma companies with 2+ years of operating costs in the bank.
I need to learn how to trade options
