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Our Call is going to be assigned!
Quote from Admin on 22 December 2023, 2:42 pmWe've been waiting for this moment for several weeks now. The price of WW is above our strike price! We are going to be assigned. This means that the stockbroker will automatically sell our WW stock at the strike price. The current price, as of this writing (and end of normal trading hours), is $9.41. Our strike price is $9.00, which means we will sale our price stock at $9.00 and not at the $9.41. This is a key point to remember when doing a covered call, your maximum profit is bound by the strike price.
Should we care that we are leaving some money behind? No. This is a normal occurrence when trading with a system. We get out now, make our profit, and move on.
We've been waiting for this moment for several weeks now. The price of WW is above our strike price! We are going to be assigned. This means that the stockbroker will automatically sell our WW stock at the strike price. The current price, as of this writing (and end of normal trading hours), is $9.41. Our strike price is $9.00, which means we will sale our price stock at $9.00 and not at the $9.41. This is a key point to remember when doing a covered call, your maximum profit is bound by the strike price.
Should we care that we are leaving some money behind? No. This is a normal occurrence when trading with a system. We get out now, make our profit, and move on.