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Rolled Forward Poor Man's covered call with LI Auto(LI:NASDAQ)

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Rolled Forward Poor Man's covered call with LI Auto(LI:NASDAQ)

Reinis Fischer
Jul 7, 2021
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Rolled Forward Poor Man's covered call with LI Auto(LI:NASDAQ)

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On July 02, 2021, I rolled forward call options on the LI auto stock (NASDAQ:LI) with a new expiry date set on July 09, 2021. The aftermath of this trade: +$18 (after commissions)

I have been in this trade since June 29, when I bought a LEAP call option, see: Established A New Poor Man's covered call with LI Auto(LI:NASDAQ)

With the LI auto stock price hovering around our strike price of $34 I decided to roll this call option into the next week for credit.

here is a trade setup:

  • SLD 1 LI JUL 09'21 35 CALL 0.2 USD

what can happen next:

Li is trading below our strike price of $35 at the expiry date (Jul 09, 2021), in this case, I keep the premium and sell more covered calls to lower my cost basis. 

Break-even: $12.41

I’m looking to hold this position for at least a year, as I’m looking at LI stock price appreciation and then selling with a profit.

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Rolled Forward Poor Man's covered call with LI Auto(LI:NASDAQ)

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