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Established New Covered Call on Tilray Brands Inc NASDAQ:TLRY - 6.14% potential gain in 4 day
On May 16, 2022, I bought 100 shares of NASDAQ:TLRY stock paying $4.88 per share, and simultaneously sold 1 covered call on them with a strike price of $5 and expiry this Friday. Credit received $18
Tilray Brands, Inc. is a global pharmaceutical, cannabis-lifestyle and consumer packaged goods company, incorporated in the United States, headquartered in New York City, New York. Tilray also has operations in Canada, Australia, New Zealand, and Latin America, with growing facilities in Germany and Portugal.
This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
here is the trade setup:
BOT 100 TLRY Stock 4.88 USD
SLD 1 DB MAY 20 '22 5 Call Option 0.18 USD
I bought 100 shares at $4.88 apiece, in total paying $488, and sold 1 covered call with this Friday’s expiry, for which I received a premium of $19 (before commissions)
What happens next?
On the expiry date, May 20, 2022, TLRY is trading under $5 per share - options expire worthlessly and I keep premium and start over - if TLRY trades above $5 on the expiry date, my 100 shares will get called away and I will realize my max profit $30 ($12 value gain and $18 options premium) or potential 6.14% income yield in 4 days.
Break-even price: $4.88-$0.18= $4.7
Running Total 1 Trades since May 16, 2022
Options income: $17