Earning by selling calls on sofi 0.40
Selling Calls on SOFI: Because Who Doesn't Love Free Money?
Hey there, fellow option traders. Today, I'm going to share with you a genius move I made (if I do say so myself) by selling a call option on SOFI. I mean, who doesn't love generating some extra cash from their stock positions?$SoFi Technologies Inc.(SOFI)$
The Trade: A Masterpiece
Stock: SOFI (because fintech is where it's at)
Buy Price: $7.80 (a steal, if you ask me)
Strike Price: $8 (the perfect price to make some extra cash)$SoFi Technologies Inc.(SOFI)$
Premium: $0.20 (cha-ching!)
Trade Type: Sell Call (because I'm a rebel like that)
The Rationale: I'm a Genius
When I bought SOFI at $7.80, I was feeling pretty bullish about the stock. But then I thought, "Why not make some extra cash while I'm at it?" So, I sold a call option at $8 with a premium of $0.20. I mean, it's like finding money on the street.
By selling the call option, I'm obligated to sell SOFI at $8 if the buyer exercises the option. But since I already own the stock, I'm essentially capping my potential upside at $8. No big deal, right? I'm still getting that sweet, sweet premium.
The Benefits: It's All Good
Selling calls is like the best thing since sliced bread. Here are some benefits:
Free Money: You get to keep the premium, and who doesn't love free money?
Less Stress: By capping your potential upside, you can reduce the stress of watching your stock price fluctuate.
Flexibility: You can adjust the strike price and expiration date to suit your mood. Just kidding, it's to suit your market outlook.
The Risks: Don't Worry, I've Got This
While selling calls is a great way to make some extra cash, there are some risks to consider:
Limited Upside: You might miss out on some potential gains if the stock price skyrockets.
Assignment Risk: If the buyer exercises the option, you'll have to sell the stock at the strike price. But hey, at least you got that premium.
Time Decay: The value of the call option will decrease over time. But don't worry, you can always sell another one.
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Conclusion: I'm a happy man
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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