Key insights
- An investor is considering selling covered calls on their Bloom Energy (BE) position to generate income. They are weighing the potential premium against the risk of capping potential upside if the stock continues to rise. The investor seeks advice on effective covered call strategies, indicating a focus on risk management and income generation within the energy sector. This reflects retail investor sentiment and positioning, which can have a marginal impact on short-term market dynamics.
I own 1,100 BE @ $70/share. This is a long term hold for me but I’ll be honest I didn’t expect it to explode like it has so quickly. I’m considering selling calls against my position but I want to do it right. Currently looking at the $430 calls for December which are going for ~$52 each so I can make like 55k just on the premium. But I originally had 1,400 shares, I sold 300 at like $205 thinking it topped and was obviously wrong. So while $430 seems crazy, I’d be tight if this thing went to $600 or something. Any advice? I realize Bloom Energy may not be a value stock, I’m mainly just looking for input on effective covered call strategies/knowledge
PS: if you’re triggered by this post because it doesn’t belong in the sub thread, I really don’t need to hear about, just downvote and be gone, thank you