Covered Call Update
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Summary
- Some rolls and an and exit to adjust to changing conditions.
- Four new positions opened with expiry on D18.
Today we adjusted to some falling positions and added new positions set to expire this Friday on Dec 18.
Adjustments
NKLA fell strongly against us, going down below our strike price of $17. But, our cost basis was only $16.35. We put in a manual order to close the buy-write at $16.30 and it executed at $16.29. We lost $17, or 0.36%. NKLA continued to fall after we got out.
LAZR also fell below our strike and we rolled it out and down to a J15 $25. We paid $3.25 for the roll, so our basis went from $28.15 to $24.90. We don't stand to win much here, but we did avoid a loss (for now).
Always always keep your basis below your strike when writing covered calls.
New positions expiring D18
We did buy-writes today on the following for the D18 week:
KNDI $6 for a net debit of $5.86 and a potential gain of 2.43%
PLTR $13 for $12.94 and a potential gain of 0.46%
FSLR $60 for $58.55 and a potential gain of 2.15%
LAZR $20 for $19.81 and a potential gain of 0.96%
It's all on the spreadsheet:
https://docs.google.com/spreadsheets/d/1bvd6d4oZaj0uQIDX63v_B3_oRORMV7TdSumBGAp0qrQ/edit?usp=sharing
Stay tuned through the week.
Cheers!
Analyst's Disclosure: I am/we are long CVM, and all the stocks in this post.
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