SMCI: losing trade risk management.
The expiring 18th July covered call with strike at $50 looked set to expire in the money and my shares to be called away since SMCI trades at $52.75 at close.
Decided to roll further out by 4 weeks to 15th Aug and higher strike at $55 to allow more breathing space for the stocks to rise.
Hope SMCI might take some breather and consolidate for a while to allow these covered calls to be able to generate premiums before I can sell new ones at higher strikes.
As it stands now, SMCI fortune is pretty much tied to Nvdia being its major supply chain partner. How much the runs up to all time highs by NVDA will translate to SMCI remains to be seen and I think some pull back might be due.
I loved my stocks to continue running higher, but at more sustained rates and after each earning cycles for market to adapt to the numbers instead of chasing based off momentum.
| Side | Price | Filled | Realized P&L |
|---|---|---|
| Credit Close | -0.40 3 | -- Closed |
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- DeltaDrift·07-19Well managed risk[Happy]LikeReport