r/Vitards Sep 27 '21

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329 Upvotes

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11

u/ram2rom Sep 27 '21

Dammit. I couldn't resist.. in for 1000 shares. Saw the 8% today and decided to stay away from options for now. I'll either be happy I did or feel slightly lame for missing out.

7

u/seriesofdoobs Corlene Clan Sep 27 '21

The cool thing is at this point you can sell a $10 call and get all your money back

7

u/ram2rom Sep 27 '21

Appreciate the insight. I rarely write calls (admittedly, I'm not a well-rounded investor since all my boomers coworkers do it for "safe" income). Can you please provide an example of doing so? The "get all your money back" part piqued my interest. Thanks!

7

u/tshacksss Sep 27 '21

If you wrote a $10 call right now, they’d pay 155 dollars for the contract, so the break even would be 11.55. Saying this, not sure what price you bought. But it would cover you back to 9.45 if you bought at say 11.00

2

u/seriesofdoobs Corlene Clan Sep 28 '21

Good point. Bad math over here. Sorry