Repairing Covered Calls on a Crashing Stock (FLY)

In this video, we’re looking at one of the most frustrating covered call situations: you sell a covered call for income… and then the stock sells off hard. So now what? Do you just sit there and hope? Do you close the whole thing for a loss? Or is there a way to start repairing the trade? This example actually came from a Daily Option Tips & Insights Newsletter reader who reached out about a covered call position that had started misbehaving (to say the least lol). So using her real-world FLY covered call trade, I walk through the same kind of trade repair process we use inside the Leveraged Investing Club: 🔹 Rolling covered calls down and out for net credits 🔹 Using premium to offset future capital losses 🔹 Lowering the strike so the stock doesn’t have to come all the way back 🔹 Deciding whether to repair all contracts together or work one contract much lower first 🔹 Why elevated option premium can make a difficult repair much easier And if YOU have a covered call or cash-secured put trade that’s giving you trouble, and would like me to take an in depth look at it and share my thoughts, be sure you're signed up for my Daily Option Tips & Insights Newsletter as that's now one of the perks of the newsletter. No joke. 👉 Want help with your own trades? Get the Daily Option Tips and Insights Newsletter ("Heads You Win, Tails Mr. Market Loses"): https://daily-tips.gr-site.com/ Re: the covered call stock sell off situation, this isn’t about magically fixing a bad trade overnight. It’s about making steady progress, reducing risk, lowering your breakeven, and working the position into a place where you the goal is to still exit with more money than you started with. And not a couple of bucks profit as you merely fight back to breakeven. Of the 70 official Leveraged Investing Club trades we've closed over the last 18 months, all of them have been winners, and more than 90% have produced either double-digit or, yes, triple-digit annualized returns. And a fair number of those have been dogs of trades where we were totally wrong (or more specifically, where I was totally wrong). (We go to great lengths to only enter high quality and high probability trades, but Mr. Market can still be an unpredictable maniac.) = = = = = 👇 Resources & Links Mentioned 👇 I've dedicated the last 25 years to mastering the craft of selling options. My goal is to bring you greater clarity and help you experience Heads You Win, Tails Mr. Market Loses. 👉 Want help with your own trades? Get the Daily Option Tips and Insights Newsletter ("Heads You Win, Tails Mr. Market Loses"): https://daily-tips.gr-site.com/ 📥 Free Downloadable Library of Options Selling eBooks, Special Reports, and Strategy Guides (including the "10 Commandments of Selling Options for High Yield Income" and "Trading for a Living: My 4 Rules"): https://www.great-option-trading-stra... 📥 Want an occasional trade idea from the Leveraged Investing Club? Download the FREE 12-page PDF TROW Open House Trade case study (full charts, trade table & performance breakdown, and key insights) for more details: https://blueontario.lpages.co/trow-op... 👉 HIMS Trade Repair Spreadsheet Details: https://www.great-option-trading-stra... 2025 Full Year Trading History: https://www.great-option-trading-stra... 2026 First Half Trading History: https://www.great-option-trading-stra... VIDEOS REFERENCED:    • HIMS Advanced Covered Call Trade Repair      • Covered Calls and Cash Secured Puts - Same...   RELATED PLAYLISTS:    • Covered Calls      • Option Selling Trade Repair   CHAPTERS 0:00 Intro 1:10 Need Help with Your Trade? 2:02 FLY Trade Setup 4:30 Leveraged Investing Club Trading History 5:05 Covered Call Repair Top Priority 6:19 Trade Repair Overview 7:38 Covered Call Trade Repair Choice #1 - Work All Contracts Lower 11:01 Covered Call Trade Repair Choice #2 - Work One Contract Lower 14:46 Trade Repair Takeaway 15:11 Covered Call Help and Resources