On January 24th
Buy 100 shares BTU @ 19
Sell one BTU covered call @ 19 for 1.13, 2/28
On February 5th
Buy 100 shares BTU @ 17
On February 6th
Roll BTU covered call @ 19 to $16 strike for 90 dollar credit
BTU price at close today: 14.63
I’m looking at around a current loss of 400. 600 on the shares, offset by the initial premium and the roll credit, plus a pending dividend. How screwed am I? The stock looked good. Dividend paying, energy sector during Trump admin, chart looked oversold. The stock is hemorrhaging money right now but the companies book value looks good and I’m not seeing any issues. I don’t really want this to turn into some 6 month swing trade. I also don’t want to keep rolling to infinity. And the stock isn’t guaranteed to ever go back up ever. What should I do?