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JLS

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Alias Born 12/14/2004

JLS

Re: WovenO2 post# 3508

Wednesday, 06/10/2020 5:05:59 PM

Wednesday, June 10, 2020 5:05:59 PM

Post# of 3562
Very rarely would I go long Calls.

I prefer to sell them, and in that way they pay weekly dividends. Those dividends can be used to buy more stock, roughly 52 times per year. Over a year, that's a hell of a lot of compounding.

My preferred style is to study stocks, buy one then sometime soon afterward sell its weekly Calls to lock in some profit. Repeat every week (or adjust within the same week if the opportunity arises), then eventually move on to another stock when the one I have is looking weak. Usually, shares are assigned every week. And, as there would be profit at the end of each week, more shares can be purchased in following weeks which means that earnings are rapidly compounded.

However, in reality stocks don't go up every week. I expect that sometimes, but there's nothing stopping me from selling Calls again during the following week and that will help to lessen the decline in the stock.

With that technique it is not difficult to make over 100% per year without taking on a lot of risk.

Why would I trade TEVA? It's a healthcare stock. The whole world has a health problem that is not going away very soon. The last time I checked, people will pay dearly to maintain their health.
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