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URL:  https://boards.fool.com/lets-take-the-case-of-mdb-on-the-list-currently-34231289.aspx

Subject:  Re: Best calls 6/21/2019 Date:  6/17/2019  11:16 AM
Author:  captainccs Number:  115159 of 115826

Lets take the case of MDB on the list. Currently the stock is priced at $165.68, All time high at $184.78 was reached last week during an intraday blowoff where it started ~$169 and finished the session $172.36 which is somewhat close to that strike price of $172.5.

So, given that you are writing covered calls for quick profit, and this MDB call is priced attractively among all calls, can we assume that Mr. Market thinks that it is quite unlikely that MDB rises to $172.5 between now and the expiration on July 12th?


Of course I don't mind the question! But you are thinking too much! LOL

All the Selector knows is that investors are willing to pay around $7.35 for the 07-12 $172.50 calls which expires in 26 days. 735/26 = $28.10 per day. Should the MDB skyrocket, you get an additional $656.00 or $25.23 per day for a total of $1,386.50 or $53.33 per day.

The Selector is working using the Friday closing price, $165.745. The investment is $16,574.50. $1,386.50 is 8.37% return in 26 days or around 117% annualized. Should MDB tank, you get a 4.4% discount on the cost (730.50 / 16,574.50 = 4.4% That's all the Selector "knows."

The execution varies from these numbers because options are very volatile but they are close enough to work with.


Thanks a bunch for your work,

You are most welcome but rest assured I do it to pay my bills! LOL

Denny Schlesinger
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