To see Part 1, here on www.optionsonfire.com: Covered Call on $GOLD, May 30, 2022: Part 1 (optionsonfire.com)
To see Part 1, on www.youtube.com: https://youtu.be/P8or6gAq2gU
Welcome back.
Now hopefully you're on our website for part two and I'm going to show you how to estimate profits every month. Wwhat we're going to do is we're going to back up to this June 17th spread and go to July 15th as and we're going to sell a calendar spread at $20 and this will estimate exactly how much you should expect to earn now it goes to the next month so you have to push this out to July and you can see it makes about $0.30 a month on a $19.28 purchase.
So just first for I'm going to bring in my calculator and I type 30 times 12 divided by 1928 and we get 18% return on investment. So that's pretty good for owning a gold stock that could go up if there's inflationary pressure continues or if deflation or stagflation. Generally gold and silver will do well.
I did put in $1928. Let's just right click this and see what it says. Yes, it's 1920 865 and so are our purchase is estimated at 18%. The one thing I would show you is that you could do it if you were to roll this to 21 in a month. I set this to custom and change this to 21.
You have a dollar more upside or $0.40 technically and you're into it as a slight debit what this would do though is you would still get the theta benefit and we can go over here to options, go to theta, you can see it's about $0.02 for either option. So, $0.02 a day roughly as a theta benefit.
So, $0.02 should be $2 times 30. It's about $60. So that's theoretical, it's usually about a third. So, $20 if you were to roll it up and away. For our paying members, stand by and we'll show you part three which is how to supercharge this same stock we'll come back for our paying members.
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