Overview On 5 July 2024, I sold one covered call contract for Walgreens Boots Alliance (WBA) $Walgreens Boots Alliance(WBA)$ stock with a maturity date of 12 July 2024 and a strike price of $10.50. I collected an option premium of $58 per contract. Subsequently, on 8 July 2024, I decided to roll over the contract to a new maturity date of 26 July 2024, collecting an additional premium of $15 when WBA stock price fell to $10.83. Initial Covered Call Strategy The initial covered call strategy was implemented with the aim of generating income from the WBA stock, which I already owned. By selling a call option with a strike price of $10.50, I anticipated the stock might not surpass this level by the maturity date, allowing me to retain the premiu
What Pitfalls Have You Encountered When Trading Options?
There are common pitfalls like Lack of basic knowledge about options, Excessive leverage, Ignoring time value, and Insufficient risk management. Share your experience with tigers to help beginners!
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