Replies to post #332877 on Anavex Life Sciences Corp (AVXL)

[ignatiusrielly35]

If you sell out of the money calls there is a chance they won’t be exercised. On the other hand, if the stock really takes off you will get exercised at a lower price. If you really want to sell no matter what you should just do a straight sale. If you want to lock in the current price just buy puts but then you will pay a premium on the options.

[LakeshoreLeo1953]

WAY TOO general a question.

IF you are happy with the current price then
sell in the money calls. You will be liable
for the taxes on the proceeds (some assumptions)
which will effectively give you more than the SP
on the day of the transaction.

IF you feel the SP should be higher then
sell out of the money calls to pocket the time premium
and be able to sell the underlying stock in 2022 if
contract does not execute.

Again....MANY assumptions.