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Subject:  Re: Best calls 6/21/2019 Date:  6/21/2019  7:16 PM
Author:  Oforfive Number:  115179 of 115827

The first week of options was successful two ways: 1) both positions expired worthless so pocketed the premiums, 2) learning experience. I think I need a process for the event of having the shares called away. The selling process is designed to minimize the chance of having the shares called away. But I am sure that many (most?) would say that the market "has it right" and it is 50/50 whether I keep the shares or say goodbye to them. In any case, if I have two or three positions a week I will have plenty of experience in dealing with the aftermath of having the shares called.

Unlike Denny, who (I think) is buying the shares and selling the calls simultaneously within a universe of option friendly stocks, my calls are written on shares of a static portfolio. If called, I will want those shares back. I'm exposing only 5% to 10% of the portfolio so that will influence the process. With the volatility of these stocks, I could sell puts and assume the risk that the stock continues to rise. And of course there is the problem that if the stock falls during the week it becomes less attractive write the calls as either the strike price is lower (get less if called away) or the premium is lower (if maintain a safer strike price). Or, I could select one of the other 7 or 8 stocks that look better and buy it for the next round of options.

But, need a checklist and process.

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