Sold 3 Call Options on SDC – 1.15% potential income return in 7 days

On November 19, 2021, I sold 3 call options on SDC stock with a strike price of $4 and expiry next Friday. I don't have actually 300 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 3 SDC NOV 26 '21 4 Call Option 0.07 USD

What happens next?

On the expiry date, November 26, 2021, SDC is trading under $4 per share -  options expire worthlessly and I keep premium - if SDC trades above $4 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: $4+$0.04= $4.04