Today I sold another call against a position we hold in anticipation of a stagnant market. We are long 200 shares of the low-code software as a service company, Appian (APPN). The APPN contract I sold expires in ten weeks (November 11th); the strike was $70 (22% above today’s close); and we claimed a $3.05 premium, per share). All told, if our shares are assigned to the owner of our call option, we’ll earn a 27% premium to today’s close for half our APPN shares.
Baring any further trades in APPN, our remaining 100 shares would be worth at least $7,000 and we’d have an additional $7,300 in cash (the premium we were paid today plus the seven thousand dollar assignment value of one hundred shares). If the market does appreciate share of APPN 22% by November, we’ll likely need to raise more cash to balance our portfolio.