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
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?