Any serious option traders out there? I consider myself a "hobbyist" when it comes to Stock Options. Selling PUTS and writing covered CALLS.
I came across a nice little Option trade this morning on Canopy Growth Corporation (CGC). It's a Canadian cannabis operator - but what it does is irrelevant to this discussion.
CGC is trading at $47.76 today. The Feb 8th (Friday) $50 Calls are selling for $.85. The Feb 15th (next Fri) $50.50 Calls are selling at $2.18. That's a pretty big premium and it's as close to a "can't lose" opportunity as you can get. Basically you could buy the stock today at $47.75, sell the Feb 15th $50.50 Calls and pocket $218 per contract. If it executes you get $50.50 plus your $2.18 or $52.68 per share after 10 days. That's a solid 10 percent gain in a little over a week. And the beauty is if the option doesn't get assigned you can do it again.
Just thought I'd share.
I came across a nice little Option trade this morning on Canopy Growth Corporation (CGC). It's a Canadian cannabis operator - but what it does is irrelevant to this discussion.
CGC is trading at $47.76 today. The Feb 8th (Friday) $50 Calls are selling for $.85. The Feb 15th (next Fri) $50.50 Calls are selling at $2.18. That's a pretty big premium and it's as close to a "can't lose" opportunity as you can get. Basically you could buy the stock today at $47.75, sell the Feb 15th $50.50 Calls and pocket $218 per contract. If it executes you get $50.50 plus your $2.18 or $52.68 per share after 10 days. That's a solid 10 percent gain in a little over a week. And the beauty is if the option doesn't get assigned you can do it again.
Just thought I'd share.
