Sold 1 Call Option on SPCE – 0.38% potential income return in 4 days

On October 18, 2021, I sold 1 call option on SPCE stock with a strike price of $22.5 and expiry this Friday. I don't have actually 100 shares to deliver if challenged. In case of danger, I will roll up and forward this call option.

Virgin Galactic is an American spaceflight company founded by Richard Branson and his British Virgin Group retains an 18% stake through Virgin Investments Limited. It is headquartered in California, USA, and operates from New Mexico.

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.

This trade comes as the #18 in the month of October, according to my trading plan for this month, the premium generated from this trade makes me about 1.43% of my $600 monthly goal.  While in total I have reached already 46.33% so far. Awesome!

here is the trade setup:

  • SLD 1 SPCE OCT 22 '21 22.5 Call Option 0.11 USD

What happens next?

On the expiry date, October 22, 2021, SPCE is trading under $22.5 per share -  options expire worthlessly and I keep premium - if SPCE trades above $22.5 I'm troubled as I need to deliver shares I don’t have, to avoid such scenario I will roll up strike prices

Break-even price: $22.5+$0.08= $22.58