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MJ DeMarco
I followed the science; all I found was money.
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I've been watching Citibank stock (C) for a covered call play that could yield 25% in 9 months. If the stock doesn't move, 10%.
Here's the strategy:
1) Buy 10,000 C @ 3.47 ($34,700)
2) Sell 100 Jan 11 Calls Strike 4 @ .34 ($3,400)
Sit around and wait.
If C stays at 3.47 you earn 10% on your money in 9 months. (13% annualized)
If C moves to 4 you earn 25% on your money in 9 months. (33% annualized)
If C moves to 3.13 you break even.
If C moves to 3.00 you lose 3%
If C goes bankrupt and fails, you lose $30,300.
The reason I'm eyeing this is I don't think the US government will let C fail and I feel there's a certain element of "safety net" therein.
This is a speculative play so do you own diligence.
I do not own the position -- I was hoping C would get a bit cheaper first.
Here's the strategy:
1) Buy 10,000 C @ 3.47 ($34,700)
2) Sell 100 Jan 11 Calls Strike 4 @ .34 ($3,400)
Sit around and wait.
If C stays at 3.47 you earn 10% on your money in 9 months. (13% annualized)
If C moves to 4 you earn 25% on your money in 9 months. (33% annualized)
If C moves to 3.13 you break even.
If C moves to 3.00 you lose 3%
If C goes bankrupt and fails, you lose $30,300.
The reason I'm eyeing this is I don't think the US government will let C fail and I feel there's a certain element of "safety net" therein.
This is a speculative play so do you own diligence.
I do not own the position -- I was hoping C would get a bit cheaper first.
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