ASML covered calls: took profit early (made ~$2K, missed ~$8K)
Sharing a lesson from an ASML covered call. I sold 10 calls a bit too aggressively. If I’m honest, it was pure reckless greed because the premium looked great, so I sized up. Ate up margin like crazy cos it was majority naked call.
I bought them back for about $2K profit, but if I’d held longer, the premium kept decaying and it would’ve been closer to ~$8K. In hindsight, I exited “too early”.
The real takeaway isn’t just timing, it’s position sizing. When you sell too many calls, your emotions start managing the trade for you! And as expiry gets closer, gamma risk ramps up: the option’s delta can change fast on small stock moves. Taking the $2K wasn’t wrong, (I rather take 2k profit than lose 2k in reality although I'm so annoyed I missed more) it was me paying tuition for a size that was bigger than what I could hold calmly.
Next time, I’m sizing smaller on expensive/volatile names like ASML and using clearer take-profit rules so I don’t let discomfort decide the exit.
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