2025 has had everything - big moves, volatility spikes, rallies, and sell-offsโฆ yet the market is pretty much flat.
This is perfect for options sellers!
When stocks go nowhere over time, theta decay does the heavy lifting:
1. Covered calls = Get paid while holding shares
2. CSPs = Get paid to buy stocks at a discount
This could potentially be an elite year for selling options.
@KrisPatel99 It is sticky. Businesses that use Adobe find it hard to move away from it. They also usually donโt have a reason to look for alternatives.
I donโt agree with Burry but I want to get this point through as well.
The market doesn't pay you for a "correct" thesis. It pays you for being on the right side of the trade. $OPEN is up 200% in a year. At that point calling it flawed is just semantics. Plenty of "perfect" fundamental cases for $PYPL and $BMNR went nowhere.
I love covered calls for the weekly premiums. But this year, I barely got a chance to buy back stocks I lost to assignment. Lately, Iโve forced myself to stop selling calls and just hold the shares I truly believe in.
Not every position needs to be optimized for income. Sometimes conviction pays better than premiums.