Sold 1 Call Option on MPW – 0.57% potential income return in 25 days

On November 22, 2021, I sold 1 call option on MPW stock with a strike price of $22 and expiry on December 17. I don't have actually 100 shares to deliver if challenged, I have just some 55.

In case of danger, I will roll up and forward this call option.

MPW - Medical Properties Trust, Inc., based in Birmingham, Alabama, is a real estate investment trust that invests in healthcare facilities subject to NNN leases. The company owns properties in the United States, Australia, Colombia, Germany, Italy, Portugal, Spain, Switzerland, and the United Kingdom

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 MPW DEC 17 '21 22 Call Option 0.15 USD

What happens next?

On the expiry date, December 17, 2021, MPW is trading under $22 per share -  options expire worthlessly and I keep premium - if MPW trades above $22 I'm troubled as I need to deliver shares I don’t have, to avoid such scenario I will try to roll up strike prices

Break-even price: $22+$0.12= $22.12