$SVXY #CoveredCalls #Rollup – one of many rollups I’m doing in various accounts for SVXY.
Bought to close SVXY Aug 19 2016 64.0 Calls @ 8.84
Sold SVXY Sep 30 2016 68.0 Calls @ 9.14 for a 0.30 Credit plus 4 points on the strike price.
The new strike price is still in the money with the stock at currently 72.70 and the breakeven for the new short call is at 77.14, well above the YTD high on the stock.
As I said last week, in this account I’m using a 3:1 overwrite strategy with an #OptionLadder approach. So if SVXY collapses again I’m not likely to get hurt to the downside unless the stock stays down for more than 6 weeks. In most cases for each individual week, I only have calls outstanding on 50% of my long stock. I roll that position each week out to a week that I have no exposure in, at successively higher strike prices.
At some point I will start letting some of my stock go and switch to selling puts. But for now this is working.
Options Bistro 