Because you wanted to buy AMZN at 3100 and then start writing more contracts after the initial write once it expires — If you do the write and the shares don’t get called away, you’ve now got a great position to sell another call, paper gains, and can continue to write.
It’s just different risk management and time horizons we are talking about. The risk / reward matters for when you’d do each strategy, but you have the math correct. 👍
Man i was in this one 6 months ago after reading an article they built a new facility a few miles from an AMZN facility but got tired of waiting to see what would happen. What will happen is AMZN partners with them or buys them outright and will be worth a fortune.
I am long G M E from a cost basis of 10, but I think it's disingenuous to compare them to AMZN/CHWY, they have potential but they are new to e-commerce and hence have execution risk. One to watch for sure.