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Tag Archives: stock repair strategy

What Do Covered Call Writing and Steroids Have in Common?

Most investors view covered call writing as a singular strategy where we buy a stock and then sell an option leveraging that security. In reality, educated option-sellers realize that one of the most remarkable advantages of using this strategy is that it can be crafted to achieve multiple goals and meet the trading style and […]

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stock repair strategy

Stock Repair Strategy: Breakeven Versus Loss-Reduction Objectives

Call options can be used to reduce losses on long stock positions. Depending on the degree our share value has declined, our target can be to lower our breakeven point or to lock-in but reduce losses. In December 2018, Sunny shared a stock repair trade he was considering involving FedEx Corp. (NYSE: FDX). At the […]

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stock repair strategy

Combining Covered Call Writing and the Stock Repair Strategy

One of our covered call writing exit strategies is converting dead money to cash profits (CDMCP). When share price is declining and under-performing the overall market, we first close the short call and then sell the stock. The cash generated from the sale of the underlying is then used to enter a new position. Another […]

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using stock options to repair stock price loss

Stock Repair Strategy: Using Stock Options to Reduce Losses When Stock Price Declines

Selling covered call and cash-secured put options are used to generate cash flow. Our knowledge of these options can also be applied to mitigating losses after a stock we own declines in value. This article highlights how options can be used to reduce losses in “stock only” portfolios. Although this article was scheduled to be […]

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