META has pretty good IV to sell option for. In this case here selling a 1 week or rather just 5 day Covered call option hedging against market volatility, this strike is pretty far out, the stock would need to go up at least 5.5% surpassing ATH in order to reach the strike. The idea to purely to collect premium without getting the underlying being called away. Not that it's impossible for META to head 5.5% up by end of the week, but rather think that it may hit some sort of resistance When it reaches its ATH value. In any case this is not a risk free trade, just need to mitigate the possible sudden surge of the share price.
| Side | Price | Filled | Realized P&L |
|---|---|---|
| Sell Open | 0.90 1Lot(s) | -- Closed |
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- DeltaDrift·07-09TOPWell position trade for premium[666]1Report
- zaza10·07-08That sounds like a smart approachLikeReport