Yesterday’s post, Monday, August 24, noted that one of our members made more than $21,000 for the week on a $500,000 portfolio, writing covered calls on Novavax (Symbol NVAX). She did so before breakfast.
Through the course of the day, NVAX dropped significantly and she lost a great deal of money on the stock itself.
…this is the fourth week in a row in which she made over $20,000 writing covered calls on NVAX. That certainly takes some of the sting out of the loss on the stock itself.
The risk/return relationship is evident here. The greater the risk, the greater the potential return but also, the greater the potential loss.
Next Monday, she will likely earn a derivatives premium of over $20,000 for the fifth week in a row.
Please note that the Monday Morning Program supports index investing.
I will keep you posted.
The Monday Morning Millionaire Program was designed to offer compressed investment convictions. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.
The program does not provide any investment advice or endorsements.
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