Trade Adjustment : covered call

Stock / Symbol: [private_monthly]Cheniere Energy / LNG [/private_monthly]
Option Strategy: covered call
Trade entry date: July 18th
Price at trade entry: $9.85
Price at this post: $6.29

Current Position:

Long 200 shares of LNG
for an effective cost of $7.95 per share
Adjustment: Our short 5 strike Oct puts expired on Friday, lowering our cost basis from $8.29 down to around $7.95. We're going to write the Nov 8 calls here to further lower our cost basis. If we get a pullback in [private_monthly]LNG[/private_monthly], we'll also look to sell more 5 strike puts. Note: with the bid currently at $0.10 on the calls were selling, we may not get filled today, so we're using a GTC order.

Trade Details:
STO -2 LNG Nov11 8 calls @ $0.15 credit (GTC, limit order)

Max Risk: $1,573
Max Reward: $26 or 1.65% @ $8 + by Nov exp
Profit Range: $7.87 + by Nov exp

Speak Your Mind