SNDL, and why the options chain matters.
I own 300 shares of SNDL FYI. I don’t believe in this company, as they just diluted investor funds, and are a pretty shit company with terrible financials, heres how you can make money off them anyway.
SNDL trades around $1.10 right now, after being beat down. I’ve been making solid money selling OTM 2$ and 1.50$ calls, so even at an entry point of 300 shares@ 1.40, i’ve still made money.
Heres the cheatcode i’ve found. At 1.10$, you can buy 100 shares for 110$, and then turn around and sell 1$ calls 2 weeks out for a premium of .20-.25, for a profit of 10-15$ for every 110$ in risk (only if stock falls to 0). If the price drops below 1$, you’ve pocketed the premium for free, and can continue to sell 1$ calls for profit at very low risk.
Only way it can go tits up is for the stock to drop well below 1$ a share, and even then with enough time you can sell enough contracts to still make profit.
TLDR: Buy SNDL, and sell covered calls for biweekly income with very low risk. EZ 20% profit per month if you do it right.
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April 3, 2021 at 04:04PM