Poor Man's covered call with Virgin Galactic stock(SPCE) - potential income 6.23% in 7 days
On May 21, we bought 1 LEAP call option on SPCE, with expiry on January 20, 2023 (2 and a half years) with a strike price of $10, and simoultenounly sold a weekly call option against this position with expiry on May 28, 2021 for this sell we got an $81 in options premium
here is our trade setup:
BOT 1 SPCE Jan20'23 10 CALL 13.00 USD
SLD 1 false SPCE May28'21 24 CALL 0.81 USD
We paid $1,300 for this LEAP option and got back $81 for a weekly call, that’s a potential return of 6.23% in just 7 days
We are looking to hold this position for at least a year, as we are looking at SPCE stock price appreciation and then selling with a profit.
here is a quick YouTube video I made about this trade:
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