I have a small position about (100 shares) in BTCI but a bit hesitant since it’s volatile and tracks BTC. Or should I just keep stacking QQQI instead? I think it’s a good long term play but wanted to get your thoughts and opinions.
I recently started and need some advice if I understand this correctly.
Current stock price: 39
Cost basis: $48 (I bought the stock $52 and DCA to $48)
Strike price: 70
Expiration: 30 days
Bid 0.00-0.75 (low liquidity)
I’m 90% certain that this stock will never hit $70 next month so why not collect the highest premium of .75 per share upfront? I’ve seen the number should be somewhere in between so 0.30-.40 in this case. How does bid and ask affect anything?
If the option ends worthless then nothing changes so my cost basis and unrealized losses doesn’t change?
If it hits strike price above $70 then my shares are called away but how does bid and ask (.75) affects in this scenario?
Any guidance is greatly appreciated.
I haven’t seen any negative news so what’s going on today?