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I have some SPCE I bought as kind of a lotter ticket stock. The stock was at $16.40 Friday. Today an analyst comes out with a buy rec and $35 price target. Stock shoots to almost $20.

I Sold January $35 covered calls for $1.49 each. That is a 7.5% premium on the current stock price, plus there is an additional 75% upside on the selling price if the options get exercised. My original purchase was at $15.47. By selling the calls, I basically lower my cost basis to $14. If they get exercised, I get a 2-bagger in less than 6 months. If they don't get exercised, I've extracted some $ from the shares for free.

Maybe the stock rockets past $35 by January and I end up regretting this, but I sold the calls.

When the stock price spikes on something I own I always check the call premiums on that stock. Often there will be a good premium at a price I would not mind selling at.
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