Discover more from Covered Calls with Reinis Fischer
Trade Adjustment: Rolled forward and up 1 Call Option on INTC – 0.38% potential income return in 14 days
On December 1, 2021, I rolled forward and up 1 call option on the INTC stock, originally established back at the end of November 2021.
I don't have actually 100 shares to deliver if challenged. (I have just some 25)
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:
BOT 1 INTC DEC 03 '21 51 Call Option 0.13 USD
SLD 1 INTC DEC 10 '21 51.5 Call Option 0.29 USD
What happens next?
On the expiry date, December 10, 2021, INTC is trading under $51.5 per share - options expire worthlessly and I keep premium - if INTC trades above $51.5 I'm troubled as I need to deliver shares I don’t have (I have just 25), to avoid such scenario I will try to roll up the strike price
Break-even price: $51.5+$0.2= $51.7