If you recall, in 2021, our fearless, intrepid investor lost $65,700 writing (selling) covered calls on Novavax (NVAX). She did in her “fun” portfolio, so while the dollar amount is significant, it is not a significant percentage of her stock market holdings overall.
Since Morningstar has stated that NVAX is undervalued and continues to be undervalued, she decided to simply hold the stock and not write covered calls on it but wait for the market to realize that this security is undervalued.
That has proved to be the correct strategy in February, almost entirely due to luck. NVAX went from $70.00 to close at $90.44 on Friday, February 11, for a gain of $20.44 per share. Since she owns 1,000 shares, she made $20,444 in total.
What does she plan to do with NVAX when the market opens at 9:30 AM today? Does she plan any further derivatives selling?YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join Us