Buy-write CIFR @2.99
Updated
CIFR is borderline oversold. It was when I started placing the trade and it rose to just above it now. This trade is designed as a 2 day trade, but if it doesn't work out, it'll be oversold anyway so I'm fine.
I bought the stock at 2.99 and wrote a 9/20 $3 call and got paid .10 ($10) for it. My plan is that I lock in a 3.3% gain in 2 days assuming the stock goes up and gets called away. If it doesn't, the call reduces my cost by that 3.3% and I can turn around and sell another weekly $3 call on it next week, assuming the stock doesn't TOTALLY tank. I'll keep doing that until it does get called or until it doesn't make sense to sell the calls and then I just ride it out like a normal oversold trade.
Editorial note: for the 3459493th time I accidentally wrote overbought instead of oversold in the original version. This version has been corrected.
I bought the stock at 2.99 and wrote a 9/20 $3 call and got paid .10 ($10) for it. My plan is that I lock in a 3.3% gain in 2 days assuming the stock goes up and gets called away. If it doesn't, the call reduces my cost by that 3.3% and I can turn around and sell another weekly $3 call on it next week, assuming the stock doesn't TOTALLY tank. I'll keep doing that until it does get called or until it doesn't make sense to sell the calls and then I just ride it out like a normal oversold trade.
Editorial note: for the 3459493th time I accidentally wrote overbought instead of oversold in the original version. This version has been corrected.
Note
Based on today's close and the after hours action on CIFR, it looks like I'm gonna get to keep the option money and my stock. That lowers the cost basis on my stock to 2.89 (2.99-0.10) and I'll do it again next week! Gotta love the combo of volatile stocks and weekly options. Note
Just sold the Sep 27 $3 call on CIFR for $0.15. If exercised on Friday, I will make 8.7% in 8 trading days on this trade, including the gain from last week's expired option. If the stock is below $3 on Friday, I will keep the stock and between the 2 options, I will now have gotten my stock for an adjusted price of 2.74 (2.99-.10-.15). Note
Sorta wishing I didn't sell that call with today's price action. But I already have miner exposure in IREN, so this trade was simply a turn a quick buck trade and it will net me almost 9% in 8 trading days, assuming it's called, so I'm not gonna complain.Trade closed: target reached
Unsurprisingly, my option was assigned. A little disappointing that they had to announce a data center acquisition this week, but like I said before, if over 1% per day wasn't good enough for me I wouldn't have done the trade in the first place.Note
Trade summary (for my record keeping):
Wins 1 Losses 0*
Stock & covered calls return: +8.7% in 8 trading days
Stock: gain: +.01/sh
Call 1: $0.10 /sh - expired
Call 2: 00.15/SH - exercised
Average return per lot traded = +8.7%
Average trade length = 8 days
Return/lot/day held = +1.09%
Annualized return per lot per day held = +274%
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