While the stock I’m all in on looks like this -
My portfolio looks like this -
How does that even work?
I sold calls weeks ago at a strike price of $35. That means I made money by selling premium. So as long as the stock stays over $35, I don’t lose money. Because I own the underlying stock, I act like the house. Better than buying calls and being crushed by theta.
If INTC finishes above $35, then the stock will sell automatically.
It does cap the upside, but it is great for risk. I planned on the stock staying in range. It will make 3% return for going sideways. Not too bad for a few weeks time in this market.