There are a little under 13 weeks left on this trade.
The stock has lost about 45 cents due to the company successfully selling 3.5 million more shares into the market at a price of $4.5o. Please see the previous post about that. The stock is still over its moving averages.
Earnings has normally been been issued in the second month of the quarter. It has been announced that the company will release its earnings for the last quarter in the first week of May.
The option has dropped in value to a $0.50 bid to $0.60 ask. The option's value has dropped by more than half.
The account put in a buy order with Optionsxpress to cover the call and lock in a profit of over 50% of the call value in just 25% of the time involved. The order price is currently below the bid so the option has to come down a little before the order is executed. The account will have to adjust the stop loss amount to reflect the overall decrease in revenue if the trade is executed.
Are you trading any covered calls?
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
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