Continuing with my covered call game, this morning I bought 400 shares of SJM at $124.51 and sold 4 call contracts against the position for $3.20 with a $125 strike price and 4/19 expiration. I immediately collected $1,280 in premiums for the sale of the calls ($3.20 x 400). Will SJM close above or below my strike price on 4/19? Only God really knows, and I’m comfortable either way.
Middle-aged Man Returns to an Old Hobby
Middle-aged Man follows up on Selling Covered Calls
With Love,
P. Gustav Mueller, author of The Present