Option Trading #2 Sell Covered Call Option for Monthly Income (SOI.PA)

21 July 2025 Selling Call Option Trading for SOI.PA (SOITEC SA)

Covered Call Strategy on SOI.PA – 30 Days DTE, Strike Price €52

📌 Strategy Overview: Selling a Call Option

Selling a call option on SOI.PA with a strike price of €52 and a 30-day expiration is a commonly used income-generating strategy known as a covered call, assuming you already own the stock. This approach allows you to collect premium while potentially agreeing to sell the shares at €52.

💰 How It Works

You own shares of SOI.PA (typically 100 shares per option contract).
You sell 1 call option with:
- Strike Price: €52
- Days to Expiration (DTE): 30 days
In return, you receive a premium (e.g., €1.20 per share = €120 per contract).

Example Calculation:

Entry stock price (21 Jul 2025): €46.52
Premium collected: €1.33
Date of expiry: 15 Aug 2025 (25 DTE)
effective sale price if assigned = €52 + €1.33 = €53.33
Maximum profit = (52 - 46.52) + 1.33= €6.81/share

Comments

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