Hi,
just to share my thoughts.
I have 12,500 WOR and have a 'hold' sentiment on them with short term volatility expected. rather than sell into today's rally, I have sold call warrants.
Here is the trade.
Own 12,500 x WOR stock
Sold 125 x July 28 2016 A$8.25 Calls @ A$0.23.
This gives me 12,500 x A$0.23 = A$2,875 cash premium into my account. The payoff is if the stock trades above A$8.25 by July 28, I may have to sell my stock at A$8.25. That would result in me having a 'sale ceiling' of A$8.25 + the A$0.23 premium - so my effective sale price would be A$8.48.
If the stock rally does not stay, then I keep my premium, and my buy-in price is effectively reduced by A$0.23 per share.
Happy for any comments or thoughts on this trade.
Cheers
Covered Call
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Last
$14.73 |
Change
-0.050(0.34%) |
Mkt cap ! $7.770B | |||
| Open | High | Low | Value | Volume |
| $14.69 | $14.94 | $14.69 | $13.22M | 894.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 5752 | $14.73 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $14.76 | 636 | 1 |
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| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| WOR (ASX) Chart |