I sold covered calls on a volatile holding, one of our best performers Fastly (FSLY). Two weeks ago, I wrote about rolling FSLY calls up and out. Today I bought to close those call positions when the market opened, for $3,000. This was my steamroller.
I had initiated short positions in call options on FSLY on September 9th and 14th when shares traded around $83. On September 29th FSLY closed at $93.38, up more than 12% in a couple weeks and I closed the option positions, at a loss, and established new covered calls in FSLY. Yesterday, FSLY shares surged another 20%, up to close around $120, and almost 45% since early/mid-September.
Our cost basis for FSLY is $23 per share. We were a couple dollars away from a Spiffy-Pop. With Strike prices at $120 and $125, to avoid a sizeable tax liability I chose to close the positions and have yet to issue new short positions in a FSLY call. I would rather not roll out the options much further due to limited available options to trade.
Source: MarketWatch.com; Accessed 8OCT2020, 1:30 PM