First, a gift idea. A friend, a 91-year-old retired, highly successful businessman, is buying memberships in the Monday Morning program for his eight grandchildren, all grown adults. Buying the right gift for some friends and relatives is often a challenge. This businessman has found an answer. At the present annual fee of $12.00, the price is right.
Now, let us review how our fearless, intrepid investor made out in her “fun” portfolio last week.
Just out-of-the-money Novavax (NVAX) was trading at $182.50 (NVAX C 8OCT21 182.50). She decided to go further out-of-the-money and sold 12 Novavax (NVAX) covered call contracts, strike price of $185.00, expiry date Friday, October 8, 2021. (C 8OCT21 185.00) That would give her $2.50 per share of growth if any, for an additional total of $3,000.00. (1,200 times $2.50)
She received $4.50 per share of immediate premium income for a total of $5,400.00. (1,200 times $4.50)
And the hoped-for growth?
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