Though BABA earnings are comng up before our short call expiry, we want to gain from the elevated premiums. Stock charts showing prices on the uptrend for the short term.
| BUY | 100 | TO OPEN | BABA | STOCK | 96.14 | DEBIT | 25INC-003 | ||
| SELL | -1 | TO OPEN | BABA | 21-FEB-25 | 95 | CALL | 5.75 | CREDIT |
Breakeven is around $90..65 and we have around 23 days for the sold call to expire. If the stock remains above $95, we can get called out with the maximum of around 5% return.