On June 25th, I bought 200 shares of SoFi Technologies (SOFI) at $16.10. With the stock trading at $19.50 today, I considered selling to lock in gains. However, after noticing a potential reversal candlestick pattern yesterday and an RSI near 80, I anticipated a short-term pullback.
Instead of just selling the shares, I decided to sell a covered call—essentially getting paid while preparing to sell. I chose to sell in-the-money calls to collect a higher premium in line with my bearish short-term outlook.
📉 With SOFI at $19.50, I sold 2 $19 calls expiring this Friday, collecting a premium of 80¢ per share, or $160 total.
Summary:
✅ Buy 200 shares of SOFI at $16.10
✅ Sold 2 Covered Calls @ $19.00 strike, collecting 80¢
✅ Total premium : +$160
📈 Happy with assignment or continued premium collection!
This trade gets a Risk Factor 1.
📈Successful trading,
Steve
The Options Coach