I am very happy with this year’s gain. Whenever I see a good opportunity to work on next year’s income I take it. I’ll take in some more money this year but I’d rather work on January’s income.
I bought 1000 shares of Nikola (NKLA) on 11/30 at $20.60 and have been selling Calls. The stock pulled back a few dollars so this time I went with a 1/15/21 Call instead of one that expires this year. I sold 10 NKLA 1/15/21 $22.50 Calls for a premium of 80¢ for $800.
Sell to Open 10 NKLA !/15/21 $22.50 C @ 80¢ (+$800)
This Expiration Date gave me a larger premium, and it moved the profit to next year. I have enough income to pay taxes on for this year.
80¢ might not sound like a lot but it’s a 3.8% Return on Investment (ROI). This is not bad for a 1 month trade with a stock that’s down $4 from where I bought. Plus, my past Calls were with a Strike Price of $21, this one has a Strike of $22.50. If I get assigned this will be a very nice deal.
If you look at my Active Trades/Current Positions page and look at my Covered Calls you will see this is the 4th Covered Call I have that will expire on 1/15/21. This will be a good week to start the new year.
Successful trading,
Steve
The Options Coach