For investors considering BSE options, here's a breakdown of...

For investors considering BSE options, here's a breakdown of the current situation:

· Out Call Options: Currently, the 177-day out call option with a $7 strike price offers a 35-cent premium. This represents a 5% return for a six-month hold. If exercised, this option limits potential upside beyond $7 but provides some guaranteed return.

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Alternative Strike Price: The $8 strike price option also offers a 25-cent premium, which might be suitable for some investors.

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Comparison: While these premiums may not be as high as some other stocks (like Tesla), a 5% return every six months can be attractive.

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Long-Term Investors: This strategy might not be ideal for long-term BSE holders who prioritize unlimited upside potential.

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Volatility and Dilution: The option premiums will likely fluctuate as more shares enter the market, causing initial volatility.

Market Timing Disclaimer: market timing can be difficult, and past performance doesn't guarantee future results.

Considerations:

Investors should carefully consider their risk tolerance and investment goals before using covered calls. It will be difficult to exit position while you sleep in Australia and market in US has changed significantly or company goes bankrupt !!! There is potential for complete loss.

As I exited my position in base, I won't enter at this price of 25c now but wait for better price !