Comments on: Sold a Covered Call

By: Phantasmix

Phantasmix — Tue, 16 Dec 2008 21:40:51 +0000

The option I sold is 25% higher now + I could’ve just sold the stock in the afternoon and pocketed the same amount, in one day.

That’s ok, that’s ok – it was a learning experience (*keep telling this to myself and it’s working* 🙂 )

All I’m getting for Christmas is books this year 🙂

By: TSS

TSS — Tue, 16 Dec 2008 16:04:59 +0000

No, understanding options is a new education entirely outside of stocks. Don’t beat yourself up.

Now work on understanding more complex options strategies like straddles, strangles, butterfly’s & condors.:-)

Great options books:

1) Sheldon Natenberg. Options Volatility & Pricing

2) Anthony Saliba. Option Strategies for Directionless markets.

Don’t expect a breezy read, but you will go right up the learning curve after you’ve read both.

Read either Black Swan or Fooled by Randomness by Taleb – great reads that will open your mind to how risk really exists Vs how we view it. I am also a fan of his style. He isn’t dry and he gets his point across in an easily digestible manner.

By: Phantasmix

Phantasmix — Tue, 16 Dec 2008 15:24:05 +0000

Trading is fun again, haaa! 🙂

Feels really good.

You have no idea how long it took me to understand covered calls. Someone was very generous with his time explained it to me, made 3 attempts.

The first time everything just went above my head because I’m (was) afraid of options, so the fear must’ve blocked the brain cells.

Taleb occupies an honorary spot on my forever-meaning-to-read list. This particular book – is it more interesting or practical?

By: TSS

TSS — Tue, 16 Dec 2008 15:17:57 +0000

Right on. Making your first options trade makes you feel like you’ve graduated trading high school and moved on to trading college 🙂

Read Taleb’s Fooled by Randomness and his take on selling premium.

Good luck!