FREE OPTIONS TRADING LESSONS HERE.
Monday, 3/13/2023
sell -1 March 17, 2023 $60 put at $0.17 (credit)
- 4 DTE
- prob ITM/assignment: 9.59%
- USO = $65.38
Friday, 3/17/2023 (expiration)
USO closed at $58.66, so I got assigned 100 shares of USO at $60/share
Monday, 3/20/2023
sell -1 March 24, 2023 $60 call at $1.42 (credit)
- 4 DTE
- prob ITM/assignment: 66%
NOTE: I generally don't like to sell covered calls because they limit the upside potential. In this case, however, I decided I would be OK if I got "called away" (sell my shares) at $60 because that was my put-assignment price. I collected $142 for the call option plus another $17 for the original short put.
My covered call expires on Friday, March 24 . . . stay tuned . . .
Friday, 3/24/2023 (expiration)
USO closed at $60.96
My covered call ended up in-the-money, so I had to sell my 100 shares at the strike price of $60/share
TOTAL PROFIT: $159
NOTE:
On 3/23/2023, USO hit a high of $63.
If I did NOT have this covered call, I could have sold my 100 shares at $63 and made a profit of $300. BUT, I had the covered call, so I was "stuck."
That's the reason I don't like to sell covered calls.
