Covered Call on NIO generating unrealized gain of $23,447 in 115 days, 129% or 410% annualized.

On Sep 16 we established a CC on NIO when we purchased 1,000 shares of NIO at $18.17 and sold 10 Sep 18 $18 Calls for $.41. Over the next 115 days we have rolled the calls 20 times and sold naked puts once .

Transactions are in the table below.

We have primarily sold “At the Money” options. The continual rise in the price of the stock has forced us to repurchase the short calls at a loss creating an overall loss on the options of $17,305. We attempted to be more aggressive in rolling the options in the past month but the stock has risen from $42 to $59 making it a challenge.

Our intent is to continue to roll the options and keep the stock for at least 12 months when the capital gains on the stock will be taxed as long term gains (15%). In 2020 we will benefit from the option losses as they will offset some of the capital gains.

New Covered Call on NIO, after 7 days profit of $1,700, 12.3% or 642% Annualized.

On 8/20 we established a new CC on NIO purchasing the stock at $13.80 and selling Aug 21 $14 calls. Stock has significantly moved up closing yesterday at $19.88. We are making a profit of $1,700 on the position so far….but the return would be higher had we not covered the position. So far we have done a calendar roll on 8/21 and a vertical roll on 8/26. Planning on a calendar roll today. Option premiums will be high on this volatile stock.