These poor man's covered call trades I'm enjoying for the most part, but there are some that get away from me.
This one fortunately is not one of those. CRWD has been working out splendidly.
Trade Details:
I initially entered this trade on June 1st when purchasing the March 2024 140 calls and selling the June 2nd 146 calls for 2.63 giving me a net debit of 26.42 to start the trade.
Since that time I have been able to roll my short term option out 7 times, collecting a credit each time.
Thankfully the price of CRWD has been a bit range bound while slightly being higher over the past month or so.
This has allowed me to roll out and up several times. I did that again today rolling out of the 7/28 155s into the 8/4 157.50s for a net credit of 1.68
This take my total cost of the trade down to 18.65.
The beauty is if I decided to close out this position I could buy back the short call and sell my March 2024 leap for a total net credit of 29.20.
Like I said, the trade is going well. Ideally I can keep working it and moving up in strike price while collecting a premium.
Looking at the chart....
You can see the stock has upside resistance around 160 with multiple tops in the past couple months. The down side of the recent range is around 145.
Odds are the stock want get to far away from me if it moves higher where my short-call gets deep in the money.
On the flipside, if the stock trades back down to 145, my long LEAP option will lose value, but I will continue to collect credits from selling short term calls as the stock trades lower.
Just keep working the position till it don't work no more!