NBIS Trade Follow-up: Time to Harvest Profits?
On April 13, I suggested that it might be prudent to sell covered calls against NBIS to collect the elevated premiums.
The specific setups I suggested considering were:
‘Sell the June 18 $200 strike to collect $1,050 now’
‘Sell the May 15 $190 strike to collect $720’
The June 18 $200 strikes are now trading at $7.55 (down roughly 30%) and will likely trade even lower tomorrow if NBIS remains flat or trends downward.
Meanwhile, the May 15 $190 strikes are trading at $3.25, a decline of approximately 55%.
My recommendation is to either buy-to-close both positions to realise these handy profits, or at least close the May contracts if letting the June ones run, with the intent to close those for a larger gain down the line. Hopefully you benefited from this one!
Thank you for reading and see you for the next one!