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).
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).
Note
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.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.