FREE OPTIONS TRADING LESSONS HERE.
11/5/2021
buy 100 shares of ADM stock at $64.40 (debit)
sell -1 Dec 17, 2021 $65 call at $1.46 (credit)
- net debit: $62.94
- this trade is called "buy-write" or "covered stock"
- oversold
- 42 DTE
- ADM = $64.41
- prob ITM (assignment): 42%
12/17/2021 (expiration)
ADM closed at $65.27, so I got assigned on the covered call
NET PROFIT: $205.34
I also collected a dividend of $37 on 12/7/2021
