Rolled forward and up 1 Call on F Stock – 3.9% potential income loss in 529 days
On February 9, 2024, I rolled forward and up 1 covered call option on Ford stock (NYSE: F) buying back strike price of $11 and, and selling new call with higher strike price at $12 and expiry set on December 20, 2024. For this trade setup, I was rewarded with $0.06 (after commissions).
At the start of November,. 2024 I got assigned 100 shares with F stock at 14. A position I originally started back in July 2023.
In the previous months and I have been trying to recover my loss by selling short strangles,
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 1 F Feb16'24 11 CALL 1.73
SLD 1 F DEC20'24 12 CALL 1.78
What happens next?
On the expiry date, December 20, 2024, F is trading under $12 - options expire worthlessly and I keep premium.
In case F trades above $12, I risk my 100 shares called away at $1,200.
As I already have collected a premium of $1.53 per share, my break-even price for this trade is $14-$1.53= $12.47.
In total: 18 trades since July 10, 2023
Options premium: $153