AM Symmetrical Triangle

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I sold the $10 put expiring 2/18 for $0.15. I expect it'll be assigned.

I'm bullish on AM, and there is a 9% dividend yield. Next dividend is early May. $0.225 per share.

Here are my choices:

Sell $12.50 call 3/18/22 for $0.05. (If possible). This gives the most upside, but least income.

-or-

Sell $10 call 3/18/22 for $0.20. If the triangle breaks out early, I miss out on the upside past $10.20.

Most triangles that breakout early come back. Good breakouts occur near the point. The point is past March 18.

The market is also very bearish right now. This makes me think the price won't top $10.20 in the next month.

If I'm wrong, the total trade is $15 (put premium) + $20 (call premium) and I miss out on further upside and the May dividend. (Unless I rebuy shares, which is possible.)

If I'm right, I made another $20 and the contract goes worthless. In that case I'd sell the $12.50 call for April.

Penafian

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