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Monday, June 20, 2022

Options trade : Archer Daniels Midland (ADM) bullish trade

 GET WEEKLY TRADE IDEAS.

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