ClearValue Investing
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AG Covered Call Position Closed for a Win!
🕑 Added 2025-12-05 21:58:18 +0000 UTCI'm happy to announce that this trade has now closed for a win.
We purchased AG for $12.33 on October 27th.
The position closes today because the price is $13+.
Essentially, we purchased AG for $12.33 and sold it for $13.25.
That is a 7.5% return in 6 weeks.
But let this be a lesson of the disadvantages of a covered call...
If we bought AG for $12.33 and did NOT write a covered call, then we could have sold it today at the market price of $15.06 (instead of $13.25). That is the danger of a covered call, that you cap your upside potential.
I'm not complaining but you should be aware of the pros and cons of covered calls. They can be a great hedge, a great income source, but it can limit your upside. Use them wisely.
If you want to learn more about covered calls (with examples), please check out my explanatory video for beginners: https://youtu.be/D5Rjx_7XG2U?si=saK2Ln9D7gN-WpWb
Comments
JImmy
Brian, 7.5% in 6 weeks. Mf'n awesome return!!
ClearValue Tax
I wanted less AG exposure because we still have the other covered call. I may roll the other one expiring the 19th. But good idea Squirrely.
squirrelySOL
Could've rolled it
