thisisthetaa
thisisthetaa OP t1_j6lb6c3 wrote
Reply to comment by DakkJaniels in 2nd time making a covered call: 1600 shares of Carvana at $8.43. 16 $9 calls sold at 0.71 a call by thisisthetaa
wait hold on if it’s 8.99 it’s out of the money and by expiration all that would be left for the most part is the intrinsic value. I was just going along with your scenario. Correct me if I’m wrong.
thisisthetaa OP t1_j6larh2 wrote
Reply to comment by Shiftybidnes in 2nd time making a covered call: 1600 shares of Carvana at $8.43. 16 $9 calls sold at 0.71 a call by thisisthetaa
so basically I buy the option back for $2656 and sell the shares for a gain of $2,512 and my profit fees aside is the premium I sold for less $144?
That’s actually not that bad
thisisthetaa OP t1_j6lai6g wrote
Reply to comment by DakkJaniels in 2nd time making a covered call: 1600 shares of Carvana at $8.43. 16 $9 calls sold at 0.71 a call by thisisthetaa
no because the first thing I hope to do if that scenario plays out is to buy back the call just before expiry and get rid of the shares instantly anyway like it’s a hot potato.
thisisthetaa OP t1_j6l9myw wrote
Reply to comment by DakkJaniels in 2nd time making a covered call: 1600 shares of Carvana at $8.43. 16 $9 calls sold at 0.71 a call by thisisthetaa
well people are saying the company is going bankrupt. I just hope it can hold out above $9 until Friday at 4
thisisthetaa OP t1_j6lb9ly wrote
Reply to comment by Severe_Set5371 in 2nd time making a covered call: 1600 shares of Carvana at $8.43. 16 $9 calls sold at 0.71 a call by thisisthetaa
what if it falls to like $6 and I have a huge unrealized loss