Here is how our fearless, intrepid investor did over the last five weeks in her “fun” portfolio writing covered calls on Novavax (NVAX) on Mondays, expiry dates on Fridays of the same week. To lower the risk of being assigned, she wrote those further out-of-the-money instead of the usual just out-of-the-money sale, as she did in the past.
On April 22 expiry date, she sold ten covered call contracts on NVAX and got $US227.50.
On April 29 expiry date, she sold ten covered call contracts on NVAX and got $US547.50.
On May 2 expiry date, she sold ten covered call contracts on NVAX (C 06MAY22 56.00) and got $1,170.00. She was assigned and her NVAX shares were called away.
On May 16 expiry date, she sold ten covered call contracts on NVAX (C 13MAY22 68.00) and got $1.520.00.
On May 20 expiry date, she sold ten covered call contracts on NVAX (C 20MAY22 58.50) and got $540.00.
Total premiums received = $US4,005.00 for the last five weeks. She was assigned once out of the five covered-call sales and decided to repurchase NVAX to continue selling covered calls in her “fun” portfolio.
Most “fun” portfolios underperform and cannot equal the S&P 500. Go here for more about “fun” portfolios,
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