(tried posting in r/options but get's removed immediately)
Hey everyone, bare with me because i cannot think of an “eli5” way of asking this…
Is there a formula to calculate what premiums could or will be to do hypothetical profit calculations selling c.c.'s after Amazon's stock split? I currently buy shares in batches of 100 and sell weekly c.c.'s against them
asked another way….
is there a formula to calculate what weekly premiums will be for AMZN calls after the 20-1 split in May? maybe we can use it's last close price of $2,936.35 as an example, which divided by 20 is $146.81. currently a call with a $2,940 strike (the next available strike after it's current trading price) expiring 3/18 has a bid of $70.05. is there to calculate the premium on a hypothetical call if AMZN is trading at $146 and we want to sell a covered call that expires the friday after next?
TLDR (kinda); I wanna yolo $400,000 into Amazon so i can have a lot of shares to sell covered calls against every Monday that expire that same Friday, how do i calculate what the dollar amount of those sweet, sweet premiums will be?? ahh mah brain hurts
Leave a Reply