BKD- Write A Call Option

4 Mar 2018

The covered call involves writing a call option contract while holding an equivalent number of shares of the underlying stock. It is also commonly referred to as a "buy-write" if the stock and options are purchased at the same time.

Symbol: BKD
Current price: $7.04
Purchase price: $704
Num. shares: #300
Total cost: $2,112

Option:
WRITE
Option: 20th April $9.00 Call (ONLY 46 days to expiry)
Price per optionL $.085
Contracts: #3 x 100
Total cost: $255 (credit/back in account now)

Max Risk: #1,857
Max. Return: $843 at a price of $9 at expiry
Break evens at expiry: $6.19

Two items of note: Around 800,00 shares have been bought by Insider's of late (on chart/pink broken lines) & earnings is scheduled for 3/5/2018 (Mon).

24 Mar 2018

Not

Need to go to Month chart to see all time low for BKD, March of 2009 at $2.50. Could hit that PA. Really not far from it. Watch for reversal before going bullish.