Thread by @wealthcoachmak

I have 800 shares of $AMZN for long term

On Aug 1, 2022 I started selling Covered Calls against these shares

✅ My objective: To get premiums without losing my shares

✅ 9 month summary:

Premiums: $9,780
No shares lost
No active calls

A brief thread 🧵

👇

#OptionsTrading

The premiums received in the amount of $9,780 is on top of the capital gains or losses in the $AMZN stock since Aug 1

I was going to hold these shares anyway

I don’t try to time the market with my core stocks by getting in and out of the stock

#OptionsTrading #Optionselling

It wasn’t a smooth ride up in this journey of selling $AMZN Covered Calls

There were a few times where the stock spiked up beyond my strike price

I had to carefully maneuver and manage through the Rollovers

Had to stay patient a LOT

#OptionsTrading #Optionselling

The last three earnings calls were a roller coaster

Big movements up and down

Even this past week the ride during AFTER HOURS after earnings was crazy

But in the end all active calls expired

In these 9 months I haven’t lost any $AMZN shares

#OptionsTrading #Optionselling

My cost basis for these shares is $92

So in 9 months I got a 13.2% return from JUST selling Covered Calls

The gains/losses are in top of that in these 9 months

But the point is that as a long term holder of $AMZN I would have held these shares anyway

Essentially selling Covered Calls allowed me to lower my cost basis in $AMZN by $12+

Covered calls become a great hedge against a stock going down

It helps you recover the capital losses in the stock for long term holders