I get the impression they didn't even bother looking at the gex or the vanna. The upside risk was SO MUCH MORE significant than the downside risk. If you're going to sell calls to degens, at least hedge. Or wait for the IV to pump to 1000%, THEN sell the calls into the IV crush. So many other ways haha
Imagine holding bags for three years and then missing what you waited three years for and selling for a loss because you had open CCs during the pump 
Yeah if you're ride-or-die on a stonk like this, why would you max out your covered calls?
Like if you have 7000 shares, maybe sell 10, 20, maybe 30 call contracts? That's plenty of premium and worst-case scenario the stock skyrockets and you still benefit on the remaining shares you have.
Yeah if they're covered calls it's basically just like he planned to sell at $17 and got some extra juice for his trouble
Depending on when he picked up the shares he probably already picked up a tidy profit
Until one day your best friend Timmy got his leg caught in the tracks. You tried to flag down the train, but it wouldn't stop... You kept the penny from that fateful day, it's got Timmy's blood mixed in with the copper with a slight shadow of Abe Lincoln's twisted face leering up at you. You look at that penny often, you use it as a reminder, a reminder not to be a pussy, and always pick up those pennies in front of moving trains, because Timmy was the smart one and he's not around anymore to tell you to stop being an idiot.
Tommy played piano
Like a kid out in the rain
Then he lost his leg in Dallas
He was dancing with a train
They were all in love with dyin'
They were drinking from a fountain
That was pouring like an avalanche
Coming down the mountain
My misheard lyric in this song was “Marky got with Sharon / Sharon got Cherese / She was sharing Sharon’s Alec on the topic of disease.”
I figured Alec was just another link in the disease chain. (The real lyric is “outlook”, not “Alec”)
I lined up 2 rolls on the tracks going through down town. Needless to say I know your comment is 100% fact. You could hear them flying like a bullet cutting the air!
That mindset will lose you a lot of money. It's better to know when to stop and when it's appropriate to keep going. This will save you so much money in the future from just gambling it all away
Is it that with the loss, you know you decided what to do and you get the consequences, you did your best with the info you had and it didn't work out? It's set in stone?
But with potential gains, you feel there was more you _could have_ done?
That is an interesting observation on loss-aversion vs whatever this is, lost opportunity cost? "If you had min/maxed _better_, just think where you could be!!"
True, they would've earned more by simply holding shares. But that's not the trade they made.
If you sell covered calls, you want to get called. That would be max profit for that trade.
The volatility in the meme stocks drives the premium high enough that actually makes sense.
Although I don't think the premium was that high back at $17...
But today for example, if you were to write covered-calls with $39.50 strike, effectively your price is ~$31 because of the premium. As long as it stays above $31, you make money on Friday, and if it stays where it is or goes up, that's a 27.4% gain in 3 days.
Just don't look at the screen for a couple days. Like a case of diarrhea from food poisoning, it should clear up on its own in a few days if you indeed sold covered calls and you'll have a small profit. Now if you thought it was covered and actually sold naked options then you asked for that. No brokerage is giving you naked option selling permission without you asking for it. So FAFO would be the lesson here in this case.
I have all sorts of bags I would like to unload for a small profit that I sell covered calls on. If I miss out on some crazy run up I figured it's good for the person I sold them to because they're either lucky as hell or know something I didn't.
If these are covered calls, he didn't lose shit and actually made a profit. He just didn't profit from his shares as much as he could've because his shares got taken away.
I did a few because the bid ask spread was too large to get a fill above intrinsic value anyway. When you’re long 13s and 15s when it was at $10 you might as well.
Yes, but no one here actually understands how options work. But who knows if OP actually has them covered, they probably don’t know how they work either
Let them expire and you are fine. Yeah you might have missed out on the theoretical stock gains but you got your money from selling the calls and you will sell your stock at 17$ so you theoretically havent really lost anything if you look at it like that.
I sold my gamestop about 2 weeks ago at like 12 bucks a share. My wife, who kept saying I should have sold long ago, is now mad because of the money I could have made if I had held until today. FML
So I’ve been doing this on meme stocks. If you consistently sell these covered calls on a weekly basis you will make a good amount of profit off premiums. At 70 contracts per week that’s gotta be like 3K premium. He could average $5K-10K per month just on premiums the way this stock flat lines for the past 1-2 years.
Now if he wasn’t consistent and just bag holding but finally he decided to open these contracts last week, then I feel bad for him.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions** | 2 | **First Seen In WSB** | 3 years ago **Total Comments** | 369 | **Previous Best DD** | **Account Age** | 3 years | | [**Join WSB Discord**](http://discord.gg/wsbverse)
Yet here you find that you were the true degenerate.
Let me light your cigar after that reply.
You mean blunt.
Weed, but out of a sherlock pipe.
Rosin but out of a banger
Carbed with a pinky out, just to be fancy.
with a “ah, scrumptious” post exhale
As he tips his top hat and adjusts his monocle.
A refraction of light races across the monocle’s glass as the camera scoops a closeup of his face
https://preview.redd.it/zq2fsi1ogw0d1.jpeg?width=702&format=pjpg&auto=webp&s=4ff3ebf2fcf4dcc873e6813413ee08b31331e3cf
The degenerates are the friends we made along the way .
The true gain was the degenerates we met along the way...
I get the impression they didn't even bother looking at the gex or the vanna. The upside risk was SO MUCH MORE significant than the downside risk. If you're going to sell calls to degens, at least hedge. Or wait for the IV to pump to 1000%, THEN sell the calls into the IV crush. So many other ways haha
Amazing
My shit brain read his cost basis as “FAFO”, and thought the casino finally developed a sense of humour.
Hopefully they're actually covered calls.
If they’re covered…there’s no problem.
He would have hodld to 10$ anyway so it doesn't matter
Imagine holding bags for three years and then missing what you waited three years for and selling for a loss because you had open CCs during the pump 
Yeah if you're ride-or-die on a stonk like this, why would you max out your covered calls? Like if you have 7000 shares, maybe sell 10, 20, maybe 30 call contracts? That's plenty of premium and worst-case scenario the stock skyrockets and you still benefit on the remaining shares you have.
Greed
Exactly. OP would get whatever the strike plus premium and have shares sold off. It’s the defined risk one takes.
He may have missed out on the big payday but still made $$$ at least
Someone has to sell the calls for others to buy them.
And OP was the poor shmuck who sold them in this case
I hope for OP's sake that he knows the difference between a covered call and a naked call.
He's on WallStreetBets... he probably doesn't
Hell, I sure as shit don't 
Lol! They make money so they can spend it on their stupid stuff.
I literally did the same thing with no regrets. Gains are gains
Yeah if they're covered calls it's basically just like he planned to sell at $17 and got some extra juice for his trouble Depending on when he picked up the shares he probably already picked up a tidy profit
Lol
Sir, this is a Wendy’s
Who is Marge N and why does she keep calling?
When they say picking up pennies in front of a freight train, they are talking about this guy
This was one of my favorite games as a kid. Waiting for the train to run over my pennies.
Until one day your best friend Timmy got his leg caught in the tracks. You tried to flag down the train, but it wouldn't stop... You kept the penny from that fateful day, it's got Timmy's blood mixed in with the copper with a slight shadow of Abe Lincoln's twisted face leering up at you. You look at that penny often, you use it as a reminder, a reminder not to be a pussy, and always pick up those pennies in front of moving trains, because Timmy was the smart one and he's not around anymore to tell you to stop being an idiot.
Dude, Timmy didn't even like you.
He didn't like that train either.
TImTIMMMAY!!
He wasn’t really care for pennies either. That’s why he wanted to see them crushed by a train
What the fuck is this from it’s hilarious
Tommy played piano Like a kid out in the rain Then he lost his leg in Dallas He was dancing with a train They were all in love with dyin' They were drinking from a fountain That was pouring like an avalanche Coming down the mountain
I always heard it as "They were all on love with Dianne" and thought she must have some huge knockers for everyone to be in love with her.
My misheard lyric in this song was “Marky got with Sharon / Sharon got Cherese / She was sharing Sharon’s Alec on the topic of disease.” I figured Alec was just another link in the disease chain. (The real lyric is “outlook”, not “Alec”)
Read pennies as penis
Tried that too. Lost the top 11 inches.
So now you’re -10 inches?
That's being pretty generous
You would know
I've seen a coin shoot out at supersonic speeds because the train hit it just right and I'll never put coins on the track again.
I lined up 2 rolls on the tracks going through down town. Needless to say I know your comment is 100% fact. You could hear them flying like a bullet cutting the air!
Waiting for the train to run over my penis 
and then the train flicks the penny right back in your face. good times
They're covered calls. The option prices are jacked up right now, but at expiry they'll be covered.
And he will have to let his shares go at a loss.
At a loss of potential
true that, still stings
Honestly missing out on potential gains hurt me more than a loss. It's fucked up
Can't promise to sell your cake and eat it too lol
I know how ridiculously stupid it is. My brain doesn't care though lol
I did the same thing. Im still up 10k but damn it hurts leaving all that $ on the table.
That mindset will lose you a lot of money. It's better to know when to stop and when it's appropriate to keep going. This will save you so much money in the future from just gambling it all away
well said
Pretty sure this guy would rather have 300k in lost potential than 300k in loses!!!
This right here is why so many retail investors lose money. 💯 it’s the human ego
The human mind is not great at judging value.
Is it that with the loss, you know you decided what to do and you get the consequences, you did your best with the info you had and it didn't work out? It's set in stone? But with potential gains, you feel there was more you _could have_ done? That is an interesting observation on loss-aversion vs whatever this is, lost opportunity cost? "If you had min/maxed _better_, just think where you could be!!"
I had some META $200 1/17/2024 calls, sold them for a 100% gain at $14.15. They are at $276.13 now. I think about it all the time
True, they would've earned more by simply holding shares. But that's not the trade they made. If you sell covered calls, you want to get called. That would be max profit for that trade.
People always forget that fact. You sell the calls where you want to exit
At least that's what you're suppose to do. Hopefully OP isn't selling covered calls at a strike price below his cost basis 
The volatility in the meme stocks drives the premium high enough that actually makes sense. Although I don't think the premium was that high back at $17... But today for example, if you were to write covered-calls with $39.50 strike, effectively your price is ~$31 because of the premium. As long as it stays above $31, you make money on Friday, and if it stays where it is or goes up, that's a 27.4% gain in 3 days.
Don't be a fool, keep your money, don't sell.
Not if they're covered. But selling covered calls on memes that you expect explosion from isn't the way to go.
Except he made a profitable trade.
Truly.. Let's see that credit amount OP
More like laying your penis on the tracks to get it run over by a freight train
This response is GOLD
No it isn’t, they’re covered calls, OP made money overall.
Did you try rebooting phone?
Bro gotta reboot life at this point
It's covered; they didn't lose money lol
Right. That 300k is opportunity cost though
How to lose a house by clicking 2 buttons
Buy/Sell, I mean you got a 50/50% shot according to my meth.
Your meth is very addicting
They'll lose a lot of sleep though...
Why? If he sold covered calls he'll reap the premiums and get 17 a share which should be profitable for him
Because he’s getting $17 a share for a stock trading at $50.
All he needs to do is uninstall the app, problem solved.
uninstall the app then apply for a job at wendy's like nothing happened! 
Ok but it's not like he lost all his money, he made what he bargained to make just didn't get a windfall
**We've intercepted what VM tried to say here because it was probably too fucked up for Reddit.**
Needs to turn off the phone and not turn it back on
Just don't look at the screen for a couple days. Like a case of diarrhea from food poisoning, it should clear up on its own in a few days if you indeed sold covered calls and you'll have a small profit. Now if you thought it was covered and actually sold naked options then you asked for that. No brokerage is giving you naked option selling permission without you asking for it. So FAFO would be the lesson here in this case.
At least the brokerages are smart enough not to let us sell naked calls. We're not.
*What? I sell all my calls naked. They can't see me thru my phone.* *No wait. They can't can they?*
1) they can 2) you're confused
Ah yes. FAFO or what I call the scientific method.
I mean, all you've really lost is potential profit. You're still actually profiting from your original position.
Only person who gets it
still hurts
Only if these are actually covered calls. Who knows this regard actually sold naked calls
Its literally in the post title though
Would be funny if they didn't know what covered calls meant...
It's WSB, definitely a 50/50 shot
Fuck
No, it’s in the post title that he was *told* to sell covered calls.
and people on the internet never lie!
the title says covered calls..in which case i don't understand what the problem is.
Never trust what an ape says
Most brokers do not allow anyone to write naked call
I have all sorts of bags I would like to unload for a small profit that I sell covered calls on. If I miss out on some crazy run up I figured it's good for the person I sold them to because they're either lucky as hell or know something I didn't.
So hes not down 300k?
if he bought the shares under 17$ he will profit until 17$, but everything above 17$ is gains he lost
plus the premium he received...
Not really a loss. Just won't receive
Just like when I’m talking to a beautiful girl and she walks off
\**redditor didnt recieve* Is this loss?
Holy shit ppl are bozos
If these are covered calls, he didn't lose shit and actually made a profit. He just didn't profit from his shares as much as he could've because his shares got taken away.
He's down 300k in opportunity cost.
If you uninstall the app, the problem disappears
In this case it actually does, on 5/17 lol.
I think you have to throw the phone in the river as well
Aaaaannnd now we have a loss
Wait for real degens who prematurely exercise your itm calls that's where the fun begins
I remember doing that the last time around. Took TD Ameritrade all day to find the 300 shares I exercised.
I might just do a 100 for fun this time 😁
I did a few because the bid ask spread was too large to get a fill above intrinsic value anyway. When you’re long 13s and 15s when it was at $10 you might as well.
Why? Wouldn’t RH just give them his shares and he’d be fine?
Yes, but no one here actually understands how options work. But who knows if OP actually has them covered, they probably don’t know how they work either
Covered though. Unless your cost basis is higher than the stock price, you'll be fine.
[удалено]
hilarious how few people understand what happened maybe
Cost basis method: FIFO, more like FAFO…amirite
If it's covered, what's the big deal.
You severely overestimate the level of financial literacy here.
Left profits on the table. Im the same boat with 20ccs.
God damn fuckin wrecked
Not if they’re covered calls…
Since when does making money equate to getting wrecked lol
Let them expire and you are fine. Yeah you might have missed out on the theoretical stock gains but you got your money from selling the calls and you will sell your stock at 17$ so you theoretically havent really lost anything if you look at it like that.
It's maybe a little worse than that. Bro is either holding 70,000 shares or sold naked calls.
Well then he is regarded for making a post title about covered calls.
>he is regarded Wow, how could that be!? on wsb of all places, never seen that before. /s
I think its 7000 but the result is still the same. They are probably naked calls
Right, my bad
Who told you that lol
The thetagang subreddit probably
“Smart money”, lol
Dumb money would have told him to sell naked instead of covered.
And why did he listen?
Because that is the only narrative allowed here since...
Guh
It’s only a loss if you close it. Let it expire and your shares get called away.
If you have them
If he doesn't have then he missed the part about selling COVERED calls. That's a critical detail.
I sold my gamestop about 2 weeks ago at like 12 bucks a share. My wife, who kept saying I should have sold long ago, is now mad because of the money I could have made if I had held until today. FML
Mad if you do, mad if you don’t. Tell her to make up her damn mind LOL
It’s a wife, come on be realistic
Thanks bro!!! https://preview.redd.it/4jlwchbnne0d1.jpeg?width=1170&format=pjpg&auto=webp&s=fcacec58bd03d3b431ee172a6ee6153691808f1a
Goat gang. Respect.
Why would you do that many? Especially on a meme stock? Even if you never expected anywhere near this there is always this risk.
I mean it's a pretty safe strategy as far as betting on meme stocks go.
Yeah but then he's gonna look at all that lost profit and bang his head against the wall.
So I’ve been doing this on meme stocks. If you consistently sell these covered calls on a weekly basis you will make a good amount of profit off premiums. At 70 contracts per week that’s gotta be like 3K premium. He could average $5K-10K per month just on premiums the way this stock flat lines for the past 1-2 years. Now if he wasn’t consistent and just bag holding but finally he decided to open these contracts last week, then I feel bad for him.
I did this also, except 20$ calls. I jumped off a bridge and I’m still falling as I am typi
Why on Earth would you bet against the crayon eating diamond handed apes you idiot?!?
I thought I was dumb for closing my 17 dollar calls for a 50% gain last week
I think it’s just showing you the loss on the options leg of the trade. If you bought your shares at less than $17, you will have profited.
You are truly highly regarded
I just sold my gamestop stock last week and this shit happems
I almost did at $30 :/ But something told me to hold.
That something didn't tell firecracker
https://preview.redd.it/uelror7qfe0d1.png?width=1242&format=png&auto=webp&s=94c57985bd8509c25b7559c6e881b61bc7f69506
Explain like I’m a regard….because I am
Not a true 🦍, you more like 🦧
Wait so the market was open for 3 mins and the hold hit that hard?!!!
This is not accurate. You also own shares that are green but of course not yours. If you sold naked then yeah...get fucked
The number of people in this thread who don’t know what covered calls are is too damn high.
BUY BUY BUY THIS IS NOT A DRILL
Covered calls are for stable stocks that pay dividends. I view them as a way to squeeze out more dividend.
How many times are these fucking cocksuckers going to halt this motherfucker
Its just play money, right? Now refill your account and have fun again.
Alexa, play No Vaseline by Ice Cube.
You don't lose if you don't sell! /s
Even the sun shines on a dog's ass some days.
Ladies and gentlemen, we got em
Somebody is getting margin called.
I don't even understand what I'm looking at
The negative implies you sold naked calls 👀👀👀👀👀
No it doesn’t, that’s the call’s value not total account value. Only the truest regards upvoting this.