To The Moon

This post is a continuation of my previous post:

https://ttm.financial/m/post/9025801531?invite=S2ODHF&lang=en_US

After checking through time value of options, the nearest option that Has higher time value than dividends is 

March 2023 $11.50 call.

Ya, u didn't see wrongly. It's 2023.

We are talking about rolling options from August 2022 to March 2023.

Am I mad? 7 months of rolling. Do people even do that?

Let's do some comparison.

1. I can close my call option and lose $1.195, to collect $1.18 from special dividends. Quite a no brainer.

2. I can roll the call option to prevent assignment, which I previously highlighted To March 2023.

I can roll for $1.74.

$1.74-1.195= $0.545 credit.

Is the premiun worth it? 

$0.545/7= $0.078 per month.

Let's do a comparison of 1 month rolling, 

Premium for Sept 2022 $11.50 call option is $1.265

rolling from august to sept will give credit of 

$1.265-1.195= $0.07.

When we compare collecting premium of $0.07 for rolling of 1 month vs collecting premium of $0.545 for 7 months which is $0.078 monthly. It seems like a gd deal!

On top of that, we still manage to assign option assignment and collect the special dividends Of $1.18.

Overall a great outcome.

[Cool] 

I am not posting my actual trade as eg, as I rolled ytd and the figures already changed from the time I did my rolling. 

[Cry] 

Hope that this post will be helpful esp to option sellers in the consideration of option rolling.