In my post “Deep In-the-Money Covered Call with Churchill Capital” I posted that I sold a Call with the Strike Price of $13.50. The correct Strike Price is $23.50. I’m sorry I hit the 1 and not the 2. The correct trade is below.
Buy 1000 Shares CCIV @ $24.50
Sell to Open 10 CCIV 6/18/21 $23.50 C @ $1.50 (+$1500)
If I get assigned I’ll lose $1000 on the stock sale and keep the $1500 premium for a $500 profit. The return will be 2%. If the stock drops and I don’t get assigned I’ll keep the entire premium of $1500 for a return of 6.1%. But my stock will be lower than my buy-in price.
Steve