This trade is only meant for members who are in our November MAG position.
We are currently up 28% on last month’s Mag Silver (MAG) trade. Today we want to leverage those gains by turning the stock into an income-generating asset.
Here we want to sell the February 22.5 all for a credit of $1.00.
If MAG finishes higher than our strike price on February expiration, the stock will get called away from us, forcing us to sell for $22.50. However, we would also keep the $1.00 credit we receive from selling this call option. This would lock us into a three-month 49% return.
If MAG finishes under our strike price on February expiration, we will retain the stock and keep the $1 credit we received from selling this call as profit. We would likely then continue to sell additional calls against the position.