PVG - Update on Call Trade

Written by MrStockFox. Posted in Trade Ideas

After going up over 50%, today PVG hit my target zone that I talked about in my last post.  On the open I added to my call position by writing -5 additional PVG 06 2015 7.50 Calls at $1.15.  I currently hold 11 covered calls on my 3100 share position.  

So several things can happen to this position.

  • Should the price of PVG trade above 7.50 on the June Option Expiration then 1100 of my shares would be called away.
  • Should the price of PVG trade below 7.50 on the June Option Expiration then I will get to keep the call premium of approx $1100
  • I could close the position early at either a gain or a loss

At this point with the share price going straight up over the last 3 weeks, there should be a retrenchment.  PVG will probably fall to between the 6.25 and the 200 day moving average before possibly going higher.  I am completely find with these shares being called away in June.  This is the 3rd time I have written covered calls against this position.

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