I think you created a tailor made example that may be misleadingly negative.
No, actually, I made up a simple example for the post. In reality, I wrote a small excel spreadsheet, and used a random number generator for the stock prices, using an average price of $100 per share, but with a spread from $70 to $130. I ran this out for a year, and tried different random samples, and found that I always lost with the simple approach, sometimes much more than in that example.
In October I think you have yourself buying shares that you already own, that you didn't get called out of.
You're right, I should not have said that you buy them, since you already own them. It does not change the result, since I did not use additional funds for the buy, and still credited the call sale.
I'm glad you are getting such a great return. Let me ask you some questions:
How long have you been doing CCs?
Do you use a simple approach, as in my example, or have you had to roll up or down very much? |
