WOLF: collect 2.6% premium on this covered call with strike at $8.
Contract expires next Fri on 28th Feb.
WOLF rallied well from the low of $5 just last week to settle at $6.72.
Took the chance to sell fresh calls at higher strike of $8 and still get decent premium and on short durations too so can continue to repeat the trades if trades are in my favor.
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- mster·2025-02-19TOPHi @Terra Incognita May I ask how do you derives the percentage of a trade, in your case here ’2.6% ‘ ? 🙏1Report
- Terra_Incognita·2025-02-19I just use the simple method of dividing how much premium I collects over the strike price. For this case, it’s $21 per contract at $8 strike so rounded to 2.6%. Other traders might have different methods to calculate profits as well.LikeReport