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Subject:  Re: Calling Captain Caracas Date:  7/15/2019  7:35 PM
Author:  Oforfive Number:  115336 of 115961

I took this to mean he would write a Put that would get exercised, the stock assigned and the premium would give him a lower entry price to the stock.

Correct. In the end, I did not go the put route. I put the money into MDB and wrote a covered call on those shares. I also scraped the loose change from the account and added 28% to my ESTC holding as the existing shares are going to get called away. I did not find an interesting call so will monitor that.

As a result I have 7 holdings with covered calls expiring July 19. Six of them would expire worthless at today's stock prices. My TWLO and TTD calls expired last Friday and I sold July 19 calls yesterday. The TWLO $145's were eclipsed first day as the shares are now at $145.40.

This is all a work in progress. Don't know how long I will continue. Entertaining, for sure. Denny said I was price anchoring, which is true--but Denny is in a pure covered call mode. He basically doesn't care what the share price does. He is not investing, he is harvesting the call premium plus stock appreciation. It might as well be invested in a variable interest rate vehicle--just much higher return. The stocks are selected based on the short term return, not on the future of the companies. I am still in an investment mode and experimenting with increasing return. It is interesting, though, that I have what I would describe as Denny's attitude towards my new MDB shares. They are not an investment. Just a one week fling and then on to something new next week.

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