Today has been a rough trading day for investors, like us, who have seen significant growth in their portfolios thanks to asset-light technology companies. Two of our covered-call options have closed on standing limit orders. First, Our last Appian (APPN) option contract closed when I was slow to reset our limit order this morning. We sold a call option (strike: $310; expiration: 19MAR2021) against our APPN shares on 19JAN2021 for $229.30 and it closed on our standing limit order of $1 per share to net $128.61. Had I been more quick to adjust our limit order, I may have save another $25-50. I will definitely sell more covered-call options against our APPN shares to generate income as I work to trim the position.
The other covered-call closed today was on our Cloudflare (NET) shares. This position was established just last Thursday when I sold this contract (strike: $90; expiration: 16FEB2021) to roll out a previous covered-call position. I have yet to roll out this position as NET is also plummeting today and I prefer to sell call on up days. Our position in NET is now under water – just one of the few in our portfolio. I may sell a call at lower strike price but we have many possibilities with a stock priced so favorably for options trading relative to our portfolio size.