Holding 1,200 shares of Novavax (NVAX) in her “fun” portfolio, on Monday, November 8, our fearless, intrepid investor sold 12 contracts of NVAX covered calls, Strike Price $175, expiry date, Nov. 12. (C 12NOV21 175.00)
She received immediate premium income of $4.1583 per share which resulted in $4,989.96 total income (1,200 times $4.1583) while allowing $5.00 per share, or $6,000 for growth (1,200 times $5.00)
As it happened, NVAX rose above her strike price of $175 and she made $10,989.96 that week ($4,989.96 plus $6000) in her “fun” portfolio.
Entirely due to luck!
Hoping for the same outcome, when the market opened on Monday, November 15 she did the same thing, namely, she wrote 12 covered calls on NVAX, strike price $180.00, expiry date November 19.
Again, NVAX rose above her strike price of $180 and she made $11,345.99 this past week ($3,346.99 immediate premium income plus $8,000.00) coming from the rise of the NVAX price.
Again, entirely due to luck!
Remember that in the week ending on Friday, October 22, she lost $36,528.00 investing (if you can call it that) the same way.
Again, entirely due to luck, only, this time, bad!
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