NaughtyPines
Long

SOLD NVAX SEPT 16TH 5 SHORT PUT

NASDAQ:NVAX   NOVAVAX INC
I already have a covered call on in this little fella, but thought I'd sell some more premium here while I can. I'll either reduce cost basis further in the stock I already have or, push comes to shove, get assigned at 5, which I'm fine with.

Filled for a .68 ($68)/contract credit ... .
Comment: As previously noted, I have both a covered call on in NVAX, as well as this naked short put. I'm looking to take off both the short put and the short call that is part of the covered call at or near worthless (.05 or less) running into expiry. At that point, I'll look at what my cost basis in the stock is to date, and then sell an Oct 21st call against my stock above my cost basis (my guess is at the 7 strike, since my cost basis currently about 5.75/share).
Comment: It's "fish or cut bait" time with both the short put and the covered call here. As you can see by looking at the chart, price has moved around a bit, but we're basically back to where I started when I put the covered call on, so I've made like zero money on the stock I hold, but both the 8 short call and the 5 short put have dwindled in value significantly, so the money I made to date on the trade is from the selling of premium and not the stock movement. Going into expiry (next Friday), I will look to close out both the short call and short put at or near worthless (.05) and then look to see whether I still want to ride this pony, in which case I'll hold onto the stock and continue to sell calls against.
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