No. of Recommendations: 3
For the TLRA row does the premium cash of $1045.50 mean selling 15 contracts @ $70 each? (which is $1050, not quite the same)

Yes. My broker charges $4.50 in commissions per trade


So if 1500 shares bought at $9.52 are assigned at $10.00, the assign cash would be $720, but yours is 700.50. What am I missing here?

My broker charges $15 in commissions for the assigned option plus the $4.50 commission on buying the stock.


But remember that this exercise is only to compare calls to find the best ones we can expect, the actual trade will be quite different depending on pre market events like futures trading, Trump tweets, whatever. Before one buys the shares one has to check that the options really are as expected, they could be better or worse.

Market lore is that early Monday stocks drop and rebound later in the day. My guess is that people sell based on the news they read over the weekend and after a couple of hours the market goes back to normal, whatever that means. ;) What I have found is that trading early on Monday is not a good idea, wait until around noon. If the market is still down you might not trade at all.

Funny thing, people say selling calls is not risky because 70% of options expire worthless but we want the stock to go up and don't mind getting assigned! Much better than the stock dropping and losing capital.

If the TLRA calls are assigned you make over 12% in 26 days -- CAGR > 500%. If the stock goes down you have a 7.3% downside protection. Better even than sliced bread! ;)

Denny Schlesinger
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