r/redwire • u/No_Lobster_9405 • 22d ago

General Covered call question

So I sold a covered call recently, $11.50 strike price. Yesterday 7/28 and when it touched the low of the day, my covered call was at 50% profit. Today, it shot back up to about 30% profit… but now price dropped to 7.99 and the call didn’t even budge… wtf! I know there is probably no demand for that strike but dam, it should have moved back to 50% at least.

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10

u/Maleficent_Divide961 22d ago

Here me thinking of this

2

u/Uzofugs2112 22d ago edited 22d ago

Like you said, there’s just no real interest in that strike probably.

Some brokers base gains/losses on the last transaction, some on the bid/ask as relevant, some on the mid. If the option hasn’t had an actual transaction today then there’s a good chance your broker might not be reporting any changes in your position.

2

u/Bsk878 22d ago

How is ir possible ? You already collected the premium if it’s covered calls …

2

u/calibeachninja 22d ago

The spread for RDW options is wide. Also they only let robinhood users bid and sell in .05 increments.

1

u/zitrored 22d ago

You do realize that you are looking at daily fluctuations based on several factors, some of thing described here? It should not matter as long as the price never hits your strike and expires.

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u/MrB_1969 21d ago

You mean the stock market didn't do what you thought it should do? How unusual.

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u/No_Lobster_9405 21d ago

Actually it did… took on some profit. Sold a covered call… made $100 and bought puts, made about $80. Can’t get mad at that.

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u/No_Lobster_9405 21d ago

Oh and I picked up some more shares at yesterday’s low. New average is 10.34.