Today a Covered Calls position was established in Moderna Inc. (ticker symbol MRNA) when the Covered Calls Advisor's buy/write limit order was executed -- 200 shares were purchased at $145.50 and 2 May 20th, 2022 Call options were sold at $12.32 at the $140.00 strike price. Given the Covered Calls Advisor's current cautious Overall Market Meter outlook, an in-the-money Covered Calls position was
established -- the Delta was 62.3, which closely approximates the probability
that the Call option will be
in-the-money on the options expiration date. In addition, the Implied Volatility of the Call was very high at 75.4 when the position was established (well above the current VIX of 28.7). There is no quarterly earnings report or ex-dividend date prior to the options expiration date. Today's earnings report was excellent both in terms of earnings per share and revenue, and the forward guidance was also encouraging.
Some key numbers for this Moderna Inc. Covered Call position are:
Covered Call Cost Basis: $26,637.34
Profit if Assigned on Expiration Date: $1,362.66
Days Until Expiration: 17
Absolute Return-on-Investment if Assigned at Expiration: +5.12%
Annualized Return-on-Investment if Assigned at Expiration: +109.8%
As always, I encourage your email questions related to the Covered Calls investing strategy.
Regards and Godspeed,
Jeff Partlow (The Covered Calls Advisor)
partlow@cox.net
