I tried to sell my AVAV shares on Monday, but it didn’t make it high enough to hit my limit order so today I changed my plan. I decided to keep the shares and sell covered calls instead. While AVAV was trading at .75 my order finally hit and I sold two AVAV August 25 covered [...]
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I tried to sell my AVAV shares on Monday, but it didn’t make it high enough to hit my limit order so today I changed my plan. I decided to keep the shares and sell covered calls instead. While AVAV was trading at .75 my order finally hit and I sold two AVAV August 25 covered calls for .45 each and received 8.57 after commissions.
AVAV has been drifting lower since mid-May and I think will hold support, but with their earnings release coming up in a couple of days I figured I should go ahead and lock in the premium while it was still high. I did well on the initial premium I received on the naked puts too, so my cost per share is down to .17. That might not be low enough if AVAV disappoints, but I still think this is an easy longer term hold on a dip. If it shoots up higher before August options expiration I’ll have to be happy taking a good gain on a small investment.
Unrelated Note: I don’t know what’s up with my comments’ setting changing every couple of days. Every two or three days I have to turn them back on only to see them all closed a couple of days later. I’ve upgraded my WordPress version in the hopes that if there was a bug or hack in it I’ve fixed it now. If you ever see it closed and want to leave a comment don’t be shy about emailing me. Hopefully it’ll resume its old ways soon of actually letting me make changes when I want rather than when it decides.
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