We had one close out for a win and entered several new positions all expiring on D18.
The close out.
Our RIOT 8's closed out at $7.95 for a gain of 4.7%, biggest gain yet. So far we are three for four for a net gain of 2.2% since Dec 7. That is 53.2% annualized.
Yesterday's new positions.
Bought VERU at $9.87 and sold D18 $7.50 calls for $2.47 for a net debit of $7.40. Max profit is 1.3% ($0.1/$7.4) in just three days if VERU stays above $7.50. It's currently at $9.99.
Bought BE at $26.54 and sold D18 $23.00 calls for $3.80 for a net debit of $22.74. Max profit is $1.14% ($0.26/$22.74) if BE stays above $23. It's currently at $25.88.
Today's new positions.
MVIS at $4.07 and sold the D18 $3.50 calls for $0.64. Max profit would be 1.75% if MVIS stays above $3.50. It's currently at $3.94.
And then another one that's exciting. Our system generally tries to sell deep ITM calls, but the EOLS ATM call was giving nearly 14% time premium just three days before expiring on Friday. So we entered EOLS at $4.01 and sold $4 calls for $0.5. If EOLS stays above $3.5 by expiration, we get nearly 14% profit! I haven't seen a setup like this in a long time.
Interestingly, while EOLS closed at $3.67 today (gulp), it shot up to $5 in after hours before settling down to $4. There was some news today about a lawsuit. Covered call traders hate news. Fingers crossed!
The link is here.
As always, happy trading!