Today, I sold a WYNN covered call, using my 100 shiny new WYNN shares as collateral.
WYNN Covered Call Details
- Contract length: 11 Days
- Fees :$6.46
- Strike Price: $98.00
- Premium: $1.47
- Annualized Rate of Return: 48.28%
- Potential Profit: $140.54
This contract expires in 11 days at a $98 strike price. There’s a $4.90 difference between WYNN’s stock price at purchase and my strike price. Hopefully this is enough of a cushion for the contract to expire worthless.
Looking back at the last trade, I’d lost $342 on the assigned shares. If this new WYNN covered call expires worthless, my lose will reduce to This loss is now $201.46. A few more successful calls and a dividend or two and I’ll be positive on my WYNN trades.