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 $141.60 and 2 September 16th, 2022 $130.00 Call options were sold at $16.12 per share. Given the Covered Calls Advisor's current cautious Overall Market Meter outlook, a moderately in-the-money Covered Calls position was
established -- the Delta was 71.2, 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 Calls was very high at 64.8 when the position was established. There is no quarterly earnings report or ex-dividend date prior to the options expiration date.
Some key numbers for this Moderna Inc. Covered Calls position are:
Covered Call Cost Basis: $25,094.66
Profit if Assigned on Expiration Date: $902.66
Days Until Expiration: 24
Absolute Return-on-Investment if Assigned at 9/16/2022 Options Expiration Date: +3.6%
Annualized Return-on-Investment if Assigned at 9/16/2022 Options Expiration Date: +54.7%
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
