Writing (selling) covered calls on Novavax (NVAX) on Mondays, strike price just out-of-the-money, expiry date, Friday of the same week, our fearless, intrepid investor lost $65,700 in 2021 in her “fun” portfolio.
Writing covered calls means that she owns NVAX shares. How many?
She holds 1,000 NVAX shares acquired at $226.56 per share, which was close to the very top!
There is only one way for investors to lose money over the long term. That way is to ignore one or more of the six habits we promote. Habit number three states: “Buy the US economy as a whole by acquiring an exchange-traded fund which tracks the S&P 500.” That means no picking individual stocks. She ignored habit number three. Owning NVAX lost her $172,069.59. It dropped 75.95% since she acquired it.
How will she handle this grim situation from here on?YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join Us