UNH: Collect 1.05% premium for this covered call with strike at $315. Contract will expire in 2 weeks on 1st Aug.
take profit and roll trade further to capture additional premium.
The old covered call were set with strike at $315 expiring on 25th July so still have 6 trading days till expiry.
However, UNH is down 7.05% for the week and closed at $282.65.
Took the opportunity of a rising volatility just ahead of earnings on 29th July to sell fresh call at $315 (same strike) and further out by 1 week to expiry on 1st Aug.
With the latest price action, I think the market is pricing a drop or miss in the earnings ahead of time since many indicators had turned bearish.
Will decide at a later date to add more positions should UNH price actions turned to more positive.
In the meanwhile, play defensive with the selling covered calls trades.
| Side | Price | Filled | Realized P&L |
|---|---|---|
| Credit Close | -3.45 1 | -- Closed |
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