TLRY took almost 20% today while most other cannabis stocks were down. That’s not really sustainable.
I decided to sell one more short term call, but this time at strike 550, just in case. I also learned that for RCS in stocks, they’re always considered naked shorts. So basically, even if I have protection it eats my margin. Based on my calculation, I need indeed to have a spot superior to 500 to have a margin call and by then my long calls kick in. I doubt we’ll see it go much higher. Could get to 150 though.
note: Closed on 12/10 paying $350 and earning $750. I preferred to close it to reduce the margin on this naked call.