PBCT is pushing higher and I believe the stock is cheap and will continue to go higher in the couple months. As their is a good amount of upside, I do see some resistance near $14.00. To protect my investment and to capitalize on upward move, I bought 200 shares @ $12.53 and sold 1 call @ 12 strike and sold 1 call at $13 strike. My net profit potential is $159 or max profit (6.3%) if the stock goes above and stays above $13 per share.
Earnings is on July 15th, so I'll most likely remove my risk before then and close out these July 17th calls by then. Also, if the stock is deep in the money around $14 per share by the end of the month, I'll close them early and trade will reach close to max profit.
Hit the like button if you want to be updated on how I'm using covered calls to make 4-5% per month and how to reduce my loss potential and how I increase my probability.
Earnings is on July 15th, so I'll most likely remove my risk before then and close out these July 17th calls by then. Also, if the stock is deep in the money around $14 per share by the end of the month, I'll close them early and trade will reach close to max profit.
Hit the like button if you want to be updated on how I'm using covered calls to make 4-5% per month and how to reduce my loss potential and how I increase my probability.