Senseonics Holdings Inc (SENS)

[leemalone2k3]

Covered call strategy is working well so far with the low historical volatility (stock staying flat) and high implied volatility (amount the stock may move). This causes the option premium to be extremely overvalued. If you sell this premium against your stock stays flat, you can pay yourself while waiting for news to move the stock.

My positions
Covered call strategy
Bought the stock at 2.65 and sold January 4.00 calls against the shares at .40. I’ll buy them back today at .05 for a .35 gain essentially lowering the cost of my stock down to 2.30. I will sell Feb calls on the next pop at resistance to continue bringing in income and lowering the cs it’s of my shares.

Long term equity appreciation strategy.
Trades made in April 2021
14 APRIL Bought 20 contracts of Jan 2023 2.00 calls at 1.60. This cost me $3200.00
22 APRIL Sold 20 contracts of Jan 2023 19.00 calls at 1.30. This paid me $2600.00.

Max risk (loss) $600.00
1.60-1.30=.30
$ 0.30 x 20 contracts = $600.00

Max Gain $ 16,000 if SENS is above 10.00 on expiration.
$10.00-$2.00= $8.00 x 20 contracts=$16,000

Breakeven SENS stock price on expiration: $2.30. There is a $20.00 increase in profit for every penny the stock is above 2.30.

I’m considering buying back the 10.00 calls soon in anticipation of a rise in stock price and selling them again at a higher price if the stock pops. They are trading .50 right now which would cost me $1000 to buy them back for a $1600 gain on those contracts.

Will continue to update the trades as they occur.
Good luck traders.