NaughtyPines
Long

SWN COVERED CALL

NYSE:SWN   SOUTHWESTERN ENERGY CO
With an IVR/IV of 100/101 and price within 5% of its 52-week low, I'm looking for a 45 DTE             play in this extremely liquid, beaten down underlying to bridge the gap between earnings seasons, as well to ride out what appears to be a thin market opportunity wise for premium selling.

SWN             Covered Call
Buy 100 shares
Sell Jan 15 9 short call
Looking for a 7.92 fill for the package
Max Profit: $108 (if called away at $9)
Buying Power Effect: $792

Note: The Jan 15 9 short call will get you nearly a 1.00, substantially reducing your cost basis in the 100 shares from $891 to $792 ... .
Rolling 9 short call down to Feb 19 8 short call for an additional .68 credit, further reducing my cost basis in the underlying.
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