Discover more from Covered Calls with Reinis Fischer
Sold 1 Call Option on EWZ ETF – 0.91% potential income return in 8 days
On December 29, 2021, I sold 1 call option on EWZ Brazil ETF with a strike price of $28 and expiry next Friday (January 7, 2022). I don't have actually 100 shares to deliver if challenged.
In case of danger, I will roll up and forward this call option.
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:
SLD 1 EWZ JAN 07 '22 28 Call Option 0.28 USD
What happens next?
On the expiry date, January 07, 2021, EWZ is trading under $28 per share - options expire worthlessly and I keep premium - if EWZ trades above $28 I'm troubled as I need to deliver shares I don’t have, to avoid such scenario I will try to roll up the strike price
Break-even price: $28+$0.25= $28.25