WMT Covered CallBeen holding this trade for a few weeks now. This is my first post related to options trading. I'm using the lines to show a visual of how selling a Call has helped create a range of profitability and risk management.
GREEN LINE - Max Profit - This green line is in relation to the original share price entry point, the Call strike price, plus any premium collected.
YELLOW LINE - Strike Price - I will adjust this often in an effort to continue to manage the risk, while maximizing profits. I try to stay under the stock price to maximize risk management.
RED LINE - Break-Even - This line is a proposed break-even price of the covered call. It is a linear sloped line, but is not accurate. This line give a rough estimation of what my break if is based on each expiration date.
PINK LINES - rough projections based on the last Max Profit and Break-Even potential. I'm using this to show what might potentially happen to the range, the longer I hold on to this trade.
