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SherkPentagram t1_je81e1v wrote

He’s telling you to sell them, not buy them though. Basically, if you wanted to sell 100 shares when it hits $140 again, you could just sell a covered call at a strike price of $140 with months until expiration, and get paid while you wait for it to hit the price you were gonna sell at anyways. Or it doesn’t hit $140 by then and you keep your shares and the money you got for selling the call.

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Paradox68 OP t1_je8apyf wrote

Something doesn’t add up there. Where’s the part where I lose all my money? When does that happen?

EDIT: nevermind, I had ChatGPT explain in more detail, and then give me a dumbed down version of both sides. I understand everything now.

E V E R Y T H I N G

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