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No. of Recommendations: 2
Denny,
Thank you for starting this thread.

This discussion has already answered most of my questions.

Fastly is actually the stock I was looking to sell covered calls on. I had a 10% position in Fastly when they preannounced. I had already sectioned off 20 percent of the stock to trade around ranges in price / sales. Fortunately, I had already sold 20% near all time highs prior to the sell off as the stock locked overextended...

The questions I had when attempting to plan the calls:
1) Time frame - weekly or further out - in a stock like Fastly with the large variances I was leaning towards weekly and it looks like that is how you handle it as well.
2) Stay away from earnings week? The timeline impacted this for sure - going to weekly only allows us to avoid the earnings period.
3) In the money or out of the money - assume this is based on conviction - do you want to hold the stock or sell? With fastly, I was looking to hold the stock at the time and make some profit with calls. So I was going OTM. Any thoughts on this?

Interestingly enough, I have sold my position in Fastly. 20% prior to the news, cut another 30% after the news and finally sold the rest today...concerned it will continue to go down with rumors of lower growth rates than expected.

I will be looking at my other high growth holdings to sell calls against. My strategy was similar to yours in that I was going to trade approx 20% of each stock using a covered call strategy. Hopefully selling covered calls at the high end of the price to sales ratios and buying back in at a better price to sales. I would then let the other 80% of the holding go untouched unless the companies story changed.

I would love some feedback on this - I have only made a few covered call trades to this point and far from an expert.

Thanks in advance,
Colin
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