Bought shares plus deep short call for 8/26 EXPY

19 Ağu 2022

1) PURCHASED 100 SHARES @ $17.95/ea. (debit $1,795 total).

2) SOLD a covered CALL @ $14 Strike, 8/26 EXPY, for $4.55 (credit $455).

3) AVG COST = $1,340 ($1,795 - $455). If I get assigned on my short call, then I sell the shares for $1400 + $455 premium = $1,855. $1,855 - $1,795 = +$60. Yippee.

4) Now I will receive the APE dividend.

5) HOPEFULLY the ITM call I sold ($14) was 'DEEP' enough. $10 Strike MAY have been a more conservative choice. Time will tell! I may be selling short calls for months and months until I recoup. But hopefully not!

6) Lastly, if this does shoot up today (8/19), I have made my peace with that. Serenity now! <--which is already has. -__-

19 Ağu 2022

Not

Scenario #1, OKAY: AMC stays above $14. I sell my shares, keep APE, and walk away $60 ahead.

Scenario #2, IDEAL: AMC closes @ $13.40 - $13.99 on 8/26. In a perfect world, AMC will fall to around $13.75 per share on 8/26 and the call I sold will expire worthless. In this best-case-scenario, I will keep my shares, keep the APE "dividend", and still be above my $1,340 avg cost or break-even price. I will continue to sell aggressive weekly calls.

Scenario #3, WORST: AMC share price falls under $13. I mean, anything above $12 would be fine. But the worst case scenario is it falling around $10 or less. I'll be more work and time to get to a breakeven. I'm pretty bad at letting shares go at a loss (which I need to come to terms with).