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URL:  https://boards.fool.com/i-did-a-few-deep-itm-covered-calls-in-april-and-34724258.aspx

Subject:  Re: ITM Covered calls as bond substitutes Date:  1/16/2021  2:00 PM
Author:  Pumatigre Number:  11302 of 11324

I did a few deep ITM covered calls in april and may, when I believed there will be a W type recovery, and considered we were near the second leg down, or with stocks that I considered risky

as an example,
04/07/2020 13:04:30 Bought 700 RCL @ 35.9
04/07/2020 13:04:30 Sold 7 RCL Apr 17 2020 32.0 Call @ 7.03

04/16/2020 10:05:03 Bought 7 RCL Apr 17 2020 32.0 Call @ 3.18
04/16/2020 10:05:03 Sold 7 RCL Apr 24 2020 32.0 Call @ 4.83

04/23/2020 10:22:43 Bought 7 RCL Apr 24 2020 32.0 Call @ 3.6
04/23/2020 10:22:43 Sold 7 RCL May 1 2020 32.0 Call @ 4.7

04/30/2020 03:23:05 Sold 700 RCL @ 32 (assignment)

So I made $4116 (less 17.5 comissions) on $20209 risked capital, and protected to the downside with an initial breakeven point of 28.87

Did similar things with CCL, AAL, BA, USL, SRNE, HTZ, ZM and I earned a lot or it helped me minimize the losses (HTZ)

Could have won more if I just buy and hold? Yes
Am I happy with what I made? yes, because it made me money while protecting me from a possible new crash

Right now, the volatility is too low for that strategy to work, so with part of my portfolio I look for "stable" stocks and write ATM or slightly OTM
If it goes down, I´m happy that I lowered my cost in stocks that I like, and I may average down

GLTA!
Edgardo
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