Replies to post #379194 on Anavex Life Sciences Corp (AVXL)

[Steady_T]

That is what I sold Jan 20 $45 calls.
Why now? Because the share price may not go up much higher. If it doesn't I have collected a nice premium.

Sure, if the share price did go up to say $30 the premium might be higher, it might not. The time value is a steadily decreasing value.

If the share price is at $30, the odds of it going past $45 are higher and I might then decide to not take the risk of losing a greater gain.

It is likely that my plan is not the best one. I have about 9% of my shares in covered calls. If exercised that will pay for the rest of my shares, so I will recover my initial investment.