Deep In-the-Money Covered Call with Skillz

A little while ago I wrote about a possible trade with Skillz (SKLZ). Well, I just took my own advice. I bought 500 Shares of SKLZ at $22 and sold a Deep In-the-Money Covered Call.

I bought the stock at $22 and sold 5 contracts of the SKLZ 6/11/21 $21 Call for a premium of $1.80.

Deep In-the Money Covered Call

Buy 500 Shares SKLZ @ $22.00

Sell to Open 5 SKLZ 6/7/21 $21.00 C @ $1.80 (+$900)

 

For anyone who did see the last post a Deep In-the-Money Covered Call is buying the stock and selling the Call at least $1 In-the-Money. Here I bought at $22 and sold the $21 Call.

If I get assigned I’ll lose $1 on the stock and keep the premium. The total return will be 3.6%.

If I don’t get assigned I’ll keep the stock and the premium will be a return of 8%.

 

Successful trading,

Steve

The Options Coach