Anavex Life Sciences Corp (AVXL)

[kevindenver]

Wait, you did what?
Is this a covered write or an over-sell? Did you forget to clarify a leg?

You sold 50 Calls and are now committed to sell 5000 shares of AVXL @ $5 if it gets there by Jan (with potential news event in Dec) for $750 premium collected. Then you used that premium for 267 shares of AVXL stock.

Good lord man that isn't "free" if a news event occurs in Dec that could potentially bring the stock over $5. I hope you have the shares to cover the short call liability.

Love the gumption!, but dang, that's a lot of risk if not covered calls for a tiny premium.

Jan $5 Calls sold 50 ..bid .15 (which had been @.10) Pleasantly paid .21 on limit order set @ .15... Proceeds added 267 more AVXL... ( almost 273..) free.

BTW, I have an acct the does actively sell $5 covered calls, but the share cost was below $3.