Hello Investors,
We passed December monthly options expiration this past weekend. Unfortunately, a couple of our 1×2 call spreads didn’t end up in-the-money. Having them expire did open up the ability for us to sell covered calls or add more spreads. In the case of NUE, we only own 50 shares of stock. So we have decided to add a diagonal call spread against our stock and possibly sell another OTM covered call if/when the stock spikes upward. We own 200 shares of CCJ. We have a January 1×2 call spread covering 100 of the shares. We sold a covered call today against the other 100 shares as shown below. Both orders have been filled!
Our NUE Diagaonal Spread did get filled just as we got off of class.
Buy to open: NUE April 17th (monthly) 125.00 strike call
Sell to open: NUE Jan 17th (monthly) 130.00 strike call
Debit: 5.88
Max risk = 5.88 or $588.00 per spread
Max reward = unlimited after Jan expiration
Sold a covered call against 100 of our CCJ shares.
Sell to open: CCJ Feb 21st (monthly) 65.00 strike call
Credit: 0.82
Have a very Merry Christmas!