Replies to post #35496 on American Airlines Group Inc (AAL)

[Moose112418]

Orrrr... shorts got caught short!!!!

[JLS]

Yep -- that happens once in a while.

I found that as being quite annoying (centered in the greed side of my brain) but I got over it pretty quick because it's a relatively rare occurrence, and the only way of avoiding that all the time is to never sell CCs any of the time. That's not happening.

That drip, drip, drip of money coming in every week from selling CCs on a properly chosen stock really adds up over a year because of the compounding (and that definitely happens as I reinvest 100% all of the time, only leaving enough cash on hand so I can trade in and out of the options during the week's rather short term price movements).

Your "I keep telling you guys" statement doesn't apply to me as I've been doing this buy-wait-write-rewrite thing for years so I have pretty good control over my emotions when I miss something great (like today). I'm guessing that type of thing happens maybe a half-dozen times every year.

The good thing is that AAL is showing a lot of spunk. That's the main thing I was worried about prior to today -- that AAL would roll over again and go even lower while other airlines did better.

[rockland2u]

well problem is I have owned this for years, and bought and sold and made killer money but since first of the year I have "rode it out" even though i wanted to sell, and lost the lion share of it, when the value drops by 2/3rds you kinda wish you had at least sold and bought back a bit cheaper, I have held oil stocks till they simply became penny stocks and became worthless, so holding or buying more is not always the best option.

[JLS]

To correct your perspective;

your "What happened..." was in response to my "What happened?"

My "What happened" was not a question of mine; rather, it was a response to another person's post which was: Nice bounce here. What changed?

In other words, I was not personally asking any question. I was merely echoing (and responding to) the other person's question.

I have purchased AAL once within the last two weeks, but I've sold weekly Calls against it twice -- once last week and once this week. If the shares are not assigned at the end of this week, I'll be selling Calls against my shares again next week, but I don't know on which day. The stock will decide what day I do that.

To sum up what I do: I buy stock then sell weekly CCs against all shares sometime afterward based on how the stock is moving. If the stock is trending upward, I won't sell the current week's CCs until I expect it to top out for a short period. If after selling CCs the stock drifts back down, I may buy those Calls back and sell them again later in the same day (or week) as the stock returns back to the mode of going higher. The whole idea is to ultimately gain from the stock itself; but in the process, trade in and out of CCs to bring in extra income, and thereby reduce overall risk.