Today, I bought KSS covered call where I bought 100 shares @ 19.04 per share and selling the at-the-money call 19 strike for 1.60.
Buy buying the covered call, I am limiting my upside by making a max profit of 1.56 x 100 shares = $156 max profit or 8.19%.
This limited profit also protects me by 8.19% at the stock price of $17.44. If stock goes below $17.44, I will start to lose money.
Now the stock could go up 20% , down 5%, or stay sideways and in all those cases, I will make money. If I'm wrong, I will own the stock at a discount of $17.44 per share.
Buy buying the covered call, I am limiting my upside by making a max profit of 1.56 x 100 shares = $156 max profit or 8.19%.
This limited profit also protects me by 8.19% at the stock price of $17.44. If stock goes below $17.44, I will start to lose money.
Now the stock could go up 20% , down 5%, or stay sideways and in all those cases, I will make money. If I'm wrong, I will own the stock at a discount of $17.44 per share.
Nota
6/4/2020- Closed position for nearly max profit as my position was deep in the money. Took $140 profit on the stock and moved on to a different stock.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.