Whitecap Resources Inc T.WCP

Covered calls

[financebuff101]

Hello everyone, I have a question regarding covered calls.

Has anyone of the long term holders considered placing covered calls, once in a while, in an attempt to "sqeeze" a few pennies here and there?  would anyone be willing to share their experience?

Thank you in advance.

[MigraineCall]

It only makes sense to sell a covered call when you think a stock price is at a peak, or you expect it to stay flat or even drop for the duration of the call. Now is not a good time, right after a $20 oil drop in WTI, with a floor under it. It is been beat down, with all the negativity in the market: Omicron, taper, drops in indexes, SPR etc., Once these things pass and get resolved, it could be

[barneyj44]

Great info Migraine

[Swoosh]

Good synopsis on covered calls MigraineCall, but I think it's a little more nuanced than that as far using covered calls as part of one's investment strategy. I use them on all of my holdings, and though I've had partial positions called away, it's also provided some welcome hedging along the way. I'm currently selling out of the money uncovered calls on XEG and holding WCP as

[financebuff101]

Hello everyone.  A special thank you to MigraineCall and Swoosh for taking the time to explain it at large.  Your replies have many valid points, some of which I have noticed myself over time. In my case, I cannot sell more than 20 contracts from any given account, due to the stock allocation.  So far, it has been quite difficult to offset the fees, since most of the WCP monthly

[Swoosh]

I use Interactive brokers. $1.25 per contract, and no commission on exercise or assignment.