To The Moon

This says the part 3 of my trade in Manulife $Manulife(MFC)$ walking down the memory lane 

I was seeing the limited profit by Manulife That I make abit from selling puts and I got a bit greedystarting to think is better to buy stocks then sell call . 

I did some dollar average on the way down from 19 to 18.14 as shown 

In this period I took twice dividend $0.22 after tax each and did a sell call at $19 getting a premium of 0.70 which is above my purchase price dated 6 months and also initiated a sell put at $15 for premium of 0.45 6 months 

So if we date as 6 months the income = 1.65 

So if take 1.65/ $18 x 100 = 9.1% 

Which translates to 1.5% per month assuming the price stays at $18 

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Selling long put and selling long call at the same time is known as sell long straddle the risk is higher than buy long straddle but as long as u have $15 x100 to cash cover the put u are fine the maxlost can be 

$15 x 100 - 0.40x 100 + 18x100 - 0.70 x100 

So around 3200 usd 

Last but not least do a poll

@Daily_Discussion @TigerStars @TigerEvents dear tiger do feature me thanks for detailed analysis of the part 3 of Manulife trade . I will update part 4 selling new calls after all expired at March . 

Currently trying to buy more Bank of America and also amazon to have 100 of them to sell call 

What is a sell stock covered call ? 

you must already own 100 shares of the underlying stock or ETF to sell a call. In options trading, short describes selling to open, or writing an option. Selling a call obligates you to sell 100 shares of the underlying at the strike price, if assigned.

If it's expire worthless u get to keep the premiumwithout selling the 100 shares