Anyone playing covered calls for a buyout?I've owned Aphria for a while and own a boatload of it. I've been selling covered calls for 2020/2021 for decent premium and using that cash to buy more stock. I use the new low cost stock and sell more calls, etc...
Is anyone else playing this strategy? I'm willing to hold until then so it may not be for everyone.
An ex: Buy 1000 shares at $7.8 =$7800
Sell 10 contracts for Jan 2021 at $11 for $3= $3000
Net $4800 cost and the option to sell your shares at $11. Not too shabby for a buyout scenario. Worst case, you're holding shares at a cost of $4.8.