Discover more from Covered Calls with Reinis Fischer
Sold 1 Call Option on SPCE – 0.64% potential income return in 3 days
On October 26, 2021, I sold 1 call option on SPCE stock with a strike price of $21 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.
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 SPCE OCT 29 '21 21 Call Option 0.16 USD
What happens next?
On the expiry date, October 29, 2021, SPCE is trading under $21 per share - options expire worthlessly and I keep premium - if SPCE trades above $21 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: $21+$0.13= $21.13