$SOFI Call(SOFI260724C18500.US)I sold a covered call on SOFI with the $18.5 strike expiring 26 July 2024. At the time of execution, the option premium was trading around $0.06, down sharply from the prior close of $0.10. The underlying stock was at $17.425, slightly below my cost basis. This setup allowed me to generate income while holding the shares, effectively reducing my breakeven point.
Selling covered calls at cost basis is a conservative strategy: if the stock rallies above $18.5, I’m comfortable letting shares go since I’d exit at breakeven plus the collected premium.If the stock stays flat or declines, the premium cushions the downside slightly, though it doesn’t eliminate risk.The trade-off is opportunity cost: I cap my upside beyond $18.5, but I gain certainty in income generation.
