$Alibaba(BABA)$ one of my fav

$Alibaba(BABA)$ one of my fav strategy when holding longs is selling covered calls to earn the small premium expiring when the price of the stock is almost stagnant.

Example buying and holding Baba at $98.5, selling Calls at $100,$105. If the calls expired worthless, i keep the premium, if exercised, I am still making profit of the premium + $100 - $98.5

I only do this when i am long, and the difference is not too big. Hope this inspire others to try options as a hedge to protect yourself rather than gambling 100 or 1000 contracts at a go.

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