You know I love them and we cashed them out when they got stupidly high but now back at $16 – I LOVE THEM AGAIN! – so:
For the $700/Month Portfolio:
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- Buy 10 SOFI 2028 $15 calls for $6.90 ($6,900)
- Sell 7 SOFI 2028 $23 calls for $4.60 ($3,220)
- Sell 3 SOFI July $17 calls for $1.30 ($390)
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That’s net $3,290 on the $8,000 spread so there’s $4,710 (143%) upside potential PLUS 6 more chances to collect $390 in premium ($2,340 – 71%) and we’re starting out $1,200 in the money at $16.20.
CLEARLY we can roll the 3 short July $17 calls to the 3x more expensive 2028 $23 calls if SOFI pops and, if it doesn’t, we’ll keep collecting our premiums!
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- For the STP, let’s sell 25 SOFI 2028 $18 calls for $6.40 ($16,000)
For the LTP, let’s:
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- Sell 20 SOFI 2028 $20 puts for $7.85 ($15,700)
- Buy 50 SOFI 2028 $13 calls for $7.80 ($39,000)
- Sell 35 SOFI 2028 $23 calls for $4.75 ($16,626)
- Sell 20 SOFI July $17 calls for $1.30 ($2,600)
- Sell 20 SOFI July $17 puts for $1.95 ($3,900)
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That’s net $174 on the $50,000 spread that’s over $15,000 in the money with $49,826 (28,735%) upside potential and we are paying so little because we REALLY want to own 4,000 shares of SOFI at $18.50ish ($74,000), which would use $37,000 worth of our ordinary margin if assigned or, for the LTP – a nice start…
We will have 6 more chances to sell $6,500 ($39,000) along the way and that’s only 5 over-covered so we’re not likely to have an issue if they turn bullish.
