Discover more from Covered Calls with Reinis Fischer
Sold 3 Call Options on SDC – 1.31% potential income return in 11 days
On November 29, 2021, I sold 3 call options on SDC stock with a strike price of $3.5 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 DEC 10 '21 3.5 Call Option 0.07 USD
What happens next?
On the expiry date, December 10, 2021, SDC is trading under $3.5 per share - options expire worthlessly and I keep premium - if SDC trades above $3.5 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: $3.5+$0.04= $3.54