CNX has been totally hammered and with an IVR of 100 and an IV of 119, I can't resist a play.
100 Shares CNX at 6.61
1 Jan 15 7 short call
Total Package: 6.00 debit ($600)
Max Profit: (If Called Away at 7 -- $100, excluding fees/commissions).
This play seems to be working out in the short term. I'll look to take it off when my profit equals the profit I would make if called away at 7 (1.00/contract or $100) or, in the alternative, just wait to be called away.
Rolling out to the July 8 short call for an additional .55 credit. It's fairly cheap, so I figured I keep it on for a while. Cost basis is now 4.77/share.
Covering for a 6.09 credit. Was going to hang in there for a bit, but with earnings season so close, I wanted to free up buying power here and there.