As discussed here just last week CCI closed the covered call position on Apple with the stated intent "to add something like June $450 short call if the stock moves up a little more"
Little did I expect that Apple would cooperate and move up 3% today. Hence today CCI re-initiated the covered call position. Specifically sold the June $460 call for a credit of about $5.00/contract. Just as with previous covered calls likely scenarios include:
- Apple reversed and goes back down - oops. But this trade lowers the break even point and will provide the opportunity/time to continue this process to further to lower the cost basis.
- in the event that Apple surges over $460 by June expiration- CCI would be "forced" to take the leveraged 25% profits in the position.
- the stock continues trade in the same range as the last quarter - CCI will repeat this process to harvest more option premium.