Covered Calls - Buy to Close - CLVS trades - YouTube

Hello everyone! My name is Stephanie Paul of  Paul's Covered Calls doing the Covid-pivot here  

Replacing my doggies with dollars!  

Amateur investor and I appreciate your time as  I share my stories trades and thought processes.

This is me. "Hi everyone!" Thank you for joining  me . In a previous video dealing with

cover calls being income stream, I mentioned some  short-term goals one of which is golfing during  

the summer. So a long story even longer, one of my  friends would run marathons and half marathons.  

So when she would come back into the office  extremely tired, obviously, it wasn't about her  

time that she talked about. It was about how many  toenails she lost. For me, I'm thinking why  

run a marathon if you're going to lose toenails.  Well, let me just tell you that this previous week,  

I played two 18's and one 9-hole, three consecutive  days of golf. And I almost lost a toenail.  

I love golf. She loves running.  We're willing to make those physical sacrifices  

for our fun summer events. That's why I  do cover calls to play golf (not necessarily  

to lose toenails). All right! Let's get  to it. Let's talk about covered calls instead!

This is our all-important board of  dog-rectors. This is myself and Sweet Pea  

We're here today to talk about why to do a  

buy back. Essentially to close your  position of an open covered call.

Again, many reasons as to why to close  an open position. And in this particular case  

we're going to talk about a stock called  CLVS. Ii have uh 500 shares of CLVS  

Quiz question? How many contracts? I have  available five (contracts). It happened to have a a stock  

share price spike. Say that ten times real  fast. At that point during that price  

spike, I decided to roll out of my existing  positions and roll up into a different position  

(different) strike price. Yet a share price that is increasing,  all of a sudden your covered calls, even though  

they should be approaching zero, when they're  out of the money (may) actually have greater value

So those previous slides were candlesticks  on the daily. This is my trading view snippet. 

These are 15 minute candles.   You can see here by the time the market opened,  

the share price itself went up  over a dollar then another dollar  

Then as the market headed into lunch  sort of a flat band and then it retracted  

a little bit. But it eventually closed   here at just under eight dollars.  

It was during this time, right here that I decided  to close my existing open covered calls, roll out  

of those existing positions and roll up into  a different strike price at a later expiration.

I also want to mention the reason I did this  and was aware of it is that I set a series of  

alerts. Whenever I have a strike price, say  at $6.50, I have some alerts that are down here  

at $6.00, $6.15, $6.45 and those alerts just went bing,  bing, bing. So that drew my attention to  

the fact that this share price was increasing. I'll  also note that because I did receive those alerts,  

you have to go into your system and re-activate  those alerts. So at times you may think  

that just because a share price drops below your (previous) alerts that your alerts are reactivated. In many  

cases that is not what happens, you have to go back  into your system and reset your alerts for this  

price range in here. That's where  I had my alerts and so when I went into (my brokerage acct)

those alerts had since been gone.  They were activated with this  

price increase. I just want that to  have some sort of awareness for you. 

Don't expect, come Monday, that these  alerts that you set are now valid.

All right. Let's get to it. Here is the green slide  

As you know, the green slide is the money  slide. And it just so happened that there was a  

price spike on Friday when Ii had  some of these covered calls expiring.

And you'll notice, I had "sell to open."  $4 times 2. I received $8.

That morning "buy to close" 2 of them,  two contracts. I had to spend money.  

But, then I immediately opened up 3 positions (contracts). And look at this at a different  

strike price $10. When  does it expire? The next week.  

And, if you watch some of my previous videos where  I have layers and ladderings, I had a spare  

covered call contract available. I bought  2 (contracts) back but I sold three at $93.

So do you get that? Plus $4, minus $68, plus $93.  When it's all said and done.

Look at this right here, 12th of March  through March 26th, I'm still in the positive $$.

When you add all this up, plus minus  plus, I'm in the positive $29 per contract.

And that's per contract for these  2 contracts. Plus $29 times 2. And then  

there's one (contract) at the full price of $93. With this  action of rolling out and rolling up to the next  

week. I've actually made some money (5.1% return). Again you have some options here to within covered calls to  

"sell to open," close those positions, and reopen at  a different expiration date. This is one of  

the reasons why and it can happen so quickly.  Literally within an hour, another hour,  

this stock price of CLVS went from under  $6.50 to over $8.50 - $2 on expiration day.  

You can still reap some benefits by closing  your positions and opening new ones.  

It's rare that this may happen. But when it does,  be prepared for that. If you spend a  

little bit of money, close your position, open up  a new one (covered call), you can actually reap some benefits.  

My name is Stephanie Paul of Paul's  Covered Calls. Amateur investor. And, I do  

appreciate your time. More to come! More to  share! Please click, subscribe, follow, comment.  

Anything to help me get  some more eyeballs and pay for my summer  

golf events. It would be greatly appreciated. Thanks  so much. Quick disclaimer here. My opinions are  

my own. My thoughts are my own. My processes are  my own. See you on the next video. Thanks again.