This afternoon our covered-call option contract (strike: $200; expiration: 18JUN2021) on Appian (APPN) shares. Like the SQ covered-call, we’re trying to liquidate exposure to APPN (half of our exposure) – but in this case to generate liquidity and greater capacity to write cash-covered put option contracts.
APPN is down more than 6% today, as I type this trade summary, but down more than 50% from the 52-week high in February. Our strike for the closed contract was 51% higher than the market’s price for APPN this morning. I plan to write another covered-call contract for APPN when the shares display upside volatility but we made $43.63 on this trade with just three days of exposure.
November 2020 through 29APR2021; source: Questrade