Sold some covered calls on $ASTS when it was trading at about $13.50 and now I’m kicking myself. What are my options here?

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    Posted by iy803

    38 Comments

    1. Post to wallstreet bets & get called regarded is the only real viable solution to your shituation

    2. Sorry what is the problem? Oh you lost the upside earn potential? That’s what the risk is with selling covered calls… literally. Just be happy you will still be making some profit.

    3. Bloated_Plaid on

      Congrats, you have achieved max profit.

      You got $4520 in Premium, you will get $17500 for selling 1000 shares minus the cost basis of $3420. That’s $18,600 in profit.

      Yes your profit was capped but that’s what happens when you sell CCs.

    4. This sounds like “I signed a contract and now I want out” except it sounds more like you’re saying you signed a contract and now you want put

    5. Humble_Increase7503 on

      You can try and roll it up and out further in time, but you should avoid ever going negative on the trade, if at all possible. If it isn’t, accept it’s gone and move on

    6. Close the position and start new. You have a gain….take it….sell puts on Asts or buy deep ITM calls if you feel Asts going higher…..keep some cash available for any pullbacks.

    7. _Stainless_Rat on

      I sold my fist covered call last week on this. I only have 400 shares and decided it was time to dabble and make a little money. My cost basis is 5.42 so I sold a 50 covered call with a 8/30 exp date. Made 120 bucks. If my shares get called away fine, I’ve doubled my entire cost with one block of 100. If they stay I do it again later for more premium and maybe a higher strike. Am I doing this right?

    8. you made money, quit crying? like, you knew exactly the max gain when you sold the calls, so…

    9. Sell your calls, train to be the most desired astronaut on the market, get hired, intentionally sabotage the vehicle, and have your wife’s boyfriend sell your covered calls at a profit before your funeral.

    10. Captain_Ahab_Ceely on

      You can try rolling up and out. See if you can get credit or be even on buying these back and selling new ones at a later expiration at a few strikes higher. Might still be covered but those extra strikes give you more profit on your underlying when it gets called.

      Another idea (if you have margin) is to sell puts ATM to be assigned shares at the current price but you’ll also collect a fat premium for this. You’re effectively turning your short calls into a short strangle. If ASTS stays where it is or goes up, you’ll lose the shares to the calls but will replace at the current price. If it keeps climbing, you’ll keep harvesting short put premium which will be good money but less than what you’d make holding the shares.

      If your personal risk profile allows, you could sell puts and use that premium to offset buying calls above your covered strike to turn it into a spread. You’d have to see how you can make enough from selling puts to cover the cost of the new calls. I always have enough buying power so if I wanted to do this, I could increase my position by selling more puts than I have shares now to get more premium to buy the spread calls at zero cost.

      Stay on top of managing your positions early, the best time to adjust is when those options become ATM, you’ll have more choices. If you only have a cash account, you are very limited on your choices. More money gives you better accounts like portfolio margin which makes you more money at the same or less risk *if you have experience*.

      In the future, try selling covered calls on only part of the position so while you get premium, you also have some shares that can run to the moon .

      Tldr, get gud, make more money, profit more.

    11. Traders_Abacus on

      I did this once… You had options when it first reached your trigger price and could have bought it back for a reasonable price (or possibly any sharp downturn). But now all you can do is go through the 5 stages of grief. And remind yourself that booking profit is always better than a loss.

    12. A stock this volatile could come crashing back down. Even a botched launch could send it plummeting I mean look at Boeing. I would just ride it out till at least December providing you don’t get assigned and roll up and out for a credit if your that married to it. The other option which I would not do is roll up and out for a credit to the Jan 16 26 25 dollar call for a net credit. Orrrrrrr you can just let the cards fall where they may.

    13. Soooooo… You made a Stock play that you wanted to hold (A Long Position) and then Sold a Covered Call Against it (A Short Position) leaving you in a neutral position. AKA a “I think the stock is going sideways” position.

      Right now you’re at Max Profit for the position. Congrats!🎉

      If you want to hold onto the shares your option is to buy out of the Call contract. Which is almost certainly going to cost you. Or you can accept your profit and go find another play.

    14. just buy the contract back with the premium and maybe some extra money you have laying around. Take a loss on the CC but get back your moon tickets.

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