A covered call position on Micron Technology Inc. (MU) was closed in the $100K account by buying back the May 16 $100 call for $10, after originally selling it for $47, locking in a total profit of $37.
Trade Outcome:
- Call Closed: May 2, 2025
- Strike Price: $100
- Initial Premium Collected: $47
- Buyback Price: $10
- Net Profit: $37
- Strategy: Covered Call
- Account Size: $100,000
Context:
This covered call was sold after assignment on MU shares as part of a yield-enhancing strategy. The favorable price movement allowed the position to be closed early for a quick gain, while retaining flexibility for future trades.
🔗 Opening Trade Reference:
MU Assigned – Sell May 100 Covered Call
Next Steps:
A new covered call position will be initiated next week to continue the income-generating cycle using the held MU shares. Strike and expiry will be selected based on updated market conditions and volatility.
Key Takeaways:
- Efficient Profit: Captured most of the premium quickly without holding through expiration.
- Rolling Strategy: Prepares the position for further yield with minimal idle time.
- Active Management: Reflects disciplined exit planning and option-selling consistency.
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