On Monday, May 3, I wrote covered calls on Novavax (NVAX), expiry date, Friday, May 7. I received a very nice premium, but NVAX dropped by a much greater amount. Much greater! The best that I can say is that I did this in my “fun” portfolio so the loss does not hurt much. But not much fun either!
When the market opens at 9:30 AM today, I will write covered calls on NVAX, expiry date this coming Friday, March 21, strike price $135. (NVAX C 21MAY21 135.00) That will allow $3.00 per share for growth (if there is any) in addition to a likely $7.00 per share premium, based on last Friday’s figures.
The premium is cash-in-pocket, bird-in-the-hand, guaranteed.
Hoping to regain my losses, each Monday, I plan to keep writing covered calls on Novavax (NVAX), expiry date, Friday of the same week.
Morningstar analysts now claim that NVAX is undervalued by 11%. When I first got into it last August, it was overvalued by 72%! Hoping to see NVAX recover, I will select a strike price each Monday, to allow for some growth.
We frequently state that with the habits of the Monday Morning program, luck hardly matters. The approach described above ignores habit number three. Here, luck matters!
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