On Friday our covered-call contract (Strike: $260; expiration: 30APR2021) on Square, SQ, expired out of the money. We established the short position on this contract just the day prior after buying to close our previous covered-call contract (strike: $265; expiration: 30APR2021) for $25.68. The expired contract netted $38.31 so we gained about $12 by closing the contract and selling another.
With a day to expiration, our $260 strike contract was 5% above the market. SQ had to appreciate 5% last Friday to have our shares called away. Low risk, and $12 was our low reward.
SQ shares have been hammered today, Tuesday, May 4th so I plan to wait a for an up day to sell another covered-call on SQ but another covered-call option contract will be sold on SQ. Perhaps we would have been better off had our shares been called away at $265, only time will tell.