selling covered calls below my average cost

External question — Personal Finance Stack Exchange Author: user122450 Original post: https://money.stackexchange.com/questions/156281 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I have this stock more than 2 yrs and wont go up , I am planning to sell covered calls all my shares just to return my capital ... example my average cost is 5 and I am planning to sell it at a strike price of 3 (cause the premium is enough to return my capital) and the expiration date is after a year. Is this ok??? (at this point i dont care if the stock rises after a year ive made up my mind) .... thank you

External answer — Personal Finance Stack Exchange Author: 0xFEE1DEAD Original post: https://money.stackexchange.com/a/156287 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. You should consider your opportunity cost. It sounds like you've already wasted two years hoping that it will go back up. Rather than spending the next year trying to claw back some losses by selling covered calls, why don't you sell it all now and invest the proceeds in something with better prospects?

External answer — Personal Finance Stack Exchange Author: Bob Baerker Original post: https://money.stackexchange.com/a/156345 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. If you cost basis is $5 then in order to break even, you would have to receive $2 for the covered call. Is that the case here? More information would enable a more detailed answer (stock symbol, current stock price as well as option premium and expiration).