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I painfully have two rules I've instated....

#1: The TTD Rule.... Never sell a Covered Call over an Earning Announcement.
I held 100 shares of TTD at a basis of $45 or so.... it'd never been above $55 before that fateful day. I sold a covered call at $65.... SURELY, that'd be safe. TTD then shot to $80 overnight on earnings and has never looked back.

#2: The SQ Rule.... Never sell a Covered Call on a Growth stock AT ALL.
I waited until after this last earning report... SQ didn't move substantially.... it was around 70.... NO WAY would it suddenly decided to jump over 10% in a few weeks.... so I sold a covered call at 77.5. I was right.... it didn't move to 77.5.... it moved to 90!!!!

Conclusion.... covered calls on growth stocks are just a bad idea unless you INTEND TO SELL.

My lesson... just don't do it. My SQ shares will be called away on Saturday. It's too deep in the money.... no way out.

Take your lumps and don't repeat your mistakes or mine!

My two cents... or my thousands of lost profits....

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