Thread by @wealthcoachmak

$DDD Covered Calls have been good to me

My Cost basis on 2800 $DDD shares: ~$6.5

I started selling Covered Calls on these shares on Oct 19, 2022

I earned $2296 in 6 months

$2072 out of that was in first month

A thread 🧵 on how

👇👇👇

#OptionsTrading #Optionselling

First Covered Call sold on $DDD on 10/19:

- 10/28 $9 x 28 lots
- Premium: $420

Call expired worthless

Then:

- 11/4 $9.5 x 28 lots
- Premium: $168

Rolled DOWN to 11/4 $9
Premium: $196

The 11/4 $9 Call expired worthless

Sold another call on 11/7

- 11/11 $8.5 x 28 lots
- Premium: $728

By 11 $DDD spiked from $8 to $10

I rolled over the call to 6+ months out:

- 5/19 $11 x 28 lots
- Premium: $560

Total earned so far: $2072 in < 1 month

From mid November to mid March $DDD fluctuated a lot

From $10 back down to $7 in December to then up to $12.5 in February to around $9.5 in March

On 3/24 I rolled DOWN half the lots (14 lots) to a closer expiry than 5/19

- 5/5 $10 x 14 lots
- Premium: $224

In the week of 4/17 - 4/21 $DDD was ~ $9 and went even under $9 on few trading days

I saw this as opportunity to roll DOWN again

2 separate roll downs:

- 4/28 $9.5 x 14 lots
- 5/5 $9.5 x 14 lots
- Premium: $0 for both

Added no premium at all but calls will be freed early

If $DDD doesn’t spike up again for a couple of weeks and remains below $9.5 then these calls will be free

6+ months of Covered Calls on these shares

No shares being called away

Earned $2296 in premium

That is 255 extra shares of $DDD

That is about an 8% return in 6+ months