Which strike to take?

Sell call atm (below my strike) for $330 in premium and risk my pnl closing at $700 (-$190) if called away?

Or sell call otm (above my strike) and take $95 in premium and have my pnl close at $1465 if called away?

I guess it comes down to if I think they will get called away.
This is another example of why trading option strategies without probability based directional bias is a fools errand.

 

Any strike will do. Just make sure you don't use stop

 

do you mean -1465?

 

No.

500 shares @ $11.88 for cost of $5,940.00
5 13.5 contracts @ $0.19 $95.00
Called away proceeds $6,750.00
6750-5940=810+95=905

Premium collected on original buy/write: $560

905+560=1465

I think I have that right...

 

First time I see someone selling calls for premium that end up with a positive Pnl if called away, that is kind of magical.

 

If your strike is above your avg price, plus you are getting premium, how are you going to end up with a negative pnl when they are called away??? The only downside is upside where you get called away at the strike instead of participating in the rally.

 

Says the guy who thinks Black Scholes is BS

Coming around on that??