Stock Struggling? Deciding Whether to Keep Selling Covered Calls | Covered Calls & Short Puts

Описание: Covered Calls & Short Puts | Cameron May | 2-23-26
Characteristics and Risks of Standardized Options. https://bit.ly/2v9tH6D

In this video, we’ll explore a common crossroads for income-focused investors: what can be done when a stock they own starts going sideways...or even drifting lower. Using the thinkorswim® paperMoney platform, we’ll walk through three example charts of stocks that are struggling and evaluate the decision to either continue selling covered calls or exit the shares altogether. Along the way, we’ll discuss factors such as downside exposure, event risk, premium potential, and technical posture. These are illustrative examples only, but they highlight the types of considerations traders might weigh when deciding whether to stay committed to a position.

We’ll also plan and place at least one example covered call on existing shares to demonstrate how a trader might structure the trade when choosing the income route. As always, we’ll review both the potential benefits — such as generating premium and reducing cost basis — and the tradeoffs, including capped upside and continued downside exposure. The goal is not to prescribe a single “right” answer, but to provide a practical framework that can help traders think more clearly about whether to keep selling covered calls on a struggling stock, or move on to the next opportunity.

Looking for income, but frustrated by low dividend offerings? Your education coach will discuss how and when options traders might employ covered calls or short puts in their income portfolio. Expect a balanced education on the potential benefits and risks of these strategies , and on the tools that can potentially help you implement it.
0823-3902

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.

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