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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