Started a covered call strategy on S today
Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.
Started a covered call strategy on S today as I took advantage of the late-morning momentum as SentinelOne broke past $17.00 today to lock in a highly optimized defensive position.
By routing a Net Debit order to buy the shares at $17.05 and simultaneously selling that June 18 $16.00 Call for $2.00, I successfully established a position that completely insulates myself from most downside earnings volatility.
Here is the exact scoreboard for this trade:
1. The Key Numbers
Gross Stock Entry: $17.05
Premium Received: -$2.00
Net Outlay (Your Break-even Cost): $15.05
Short Strike: $16.00
2. Risk vs. Reward Performance
My Downside Cushion: 11.7%. Because the true net cost basis is dragged all the way down to $15.05, I cannot lose a single dime on this trade unless SentinelOne falls more than 11.7% from the buy price.
Max Profit: $0.95 per share ($95 total per contract).
How it's calculated: If the stock stays anywhere above $16.00 by June 18, I will be forced to sell my shares at $16.00. Since my net cost was $15.05, I am net $0.95 clear.
Raw Return on Capital: 6.31% ($95 profit on $1,505 capital) in roughly 34 days. That equates to an annualized yield of over 67%.
@Madluvyz - Specialist in combining FA and TA for options selling and swing trading.[举爪]
Modify on 2026-05-16 06:07
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