How do you know not to sell calls on certain stocks?

I mean, if you would’ve sold calls on AMD wouldn’t you have gotten destroyed?

12 comments held Reddit says 0 on reddit ↗

u/iron_condor34 1 3 days ago

Have some type of measure to try and figure out if they're "cheap" or not.
u/ReadilyVibrant 1 3 days ago

that's the problem with selling calls on something like AMD, the chart alone tells you it was running hot all year. if you're not measuring IV against realized vol you're basically guessing
u/iron_condor34 1 3 days ago

And a majority here don't even pay attention to realized vol. You're not just trading implied vol even though that seems to be all the focus here.
u/Bender1012 1 3 days ago

Selling CCs on tech stocks is just accepting a certain probability of getting wrecked. Has happened to me with NVDA, AMD, MSFT, META. Just part of the game.
u/vrtig0 1 3 days ago

Ask yourself this question: "s this a stock I own and want to continue to own?" If the answer is yes, then you don't sell covered calls on it.
u/Avocadonot 1 3 days ago

The duality of thetagang lol "Don't wheel a stock you wouldn't want to own" "Don't wheel a stock you want to own"
u/Turbulent_Cricket497 OP 1 3 days ago

Let me clarify, I’m not talking about selling covered calls. I am talking about either selling very wide call spreads with a lot of upside risk or naked calls.
u/Repulsive-Budget-380 1 3 days ago

I don't know. I lost $3k on Jan 2029 $1000C, but gain $10k on the stock. Still holding.
u/Zestyclose-Ice-3434 1 3 days ago

Oh how times have changed. Advanced Money Destroyer became Advanced Money Delivery.
u/hv876 1 3 days ago

One simple rule. Would I want to hold this stock for 10 years. If yes, no sold calls.
u/byzantium171 1 3 days ago

I started trying to wheel AMD when it was $50. my shares never got called away so eventually I started just accumulating more and more of them. Now I can retire
u/EngineerDirector 1 3 days ago

We’re here to make profits, you get assigned on walls start selling puts, literally the exact same thing. We get paid weekly no matter what.