08-23-2021, 07:34 PM
(08-23-2021, 06:25 PM)Dividendwayfarer Wrote:When I checked the option chain your strike had a 12 Delta. 12% likelihood of expiring in the money hence 88% probability of expiring out of the money.(08-23-2021, 05:37 PM)NilesMike Wrote:(08-23-2021, 04:49 PM)Dividendwayfarer Wrote: A option newbie enter his first covered call for PNW at a strike price at $95, expires on Oct 15. Hopefully it will turn out ok.Welcome to our humble discussion.
You have an 88% probability of it working out plus the risk is heavily priced to the downside.
Good luck
For my education, how did you come up with 88%? Are there resources you will point to for a newbie like me?
I use Thinkorswim platform, it's pretty much the leader.