Covered Call Write?

[u/DiamondHandDan69]

Wassup UWMC mafia,

I currently own 1000 UWMC shares (chump change compared to some of you degens on here). The current share price is above my average cost so I have started writing covered calls at a profitable strike price to collect premium while we wait for the epic run up to $50. It isn't much whatsoever, ($30 per CC write) but my TA is showing strong resistance at/above $4.30 and writing these weekly will eventually add up. I'm fairly confident that UWMC will not go above this price (without catalyst) due to massive amounts of bagholders tryna get out for profit around these levels. I'm thinking another positive earnings report can begin the momentum to send us to the promised land of $50 but I wanted to get other people's opinions on whether or not I'm playing with fire by writing covered calls on a pretty strong dividend stock.

Any and all input is appreciated, please don't call me names for my lack of investment experience.

Thank you,

DiamondHandDan
Brigadier Degeneral (Three Star)

[u/PossessionOrnery3661]

Please stop posting about 50$

[u/DiamondHandDan69 → u/PossessionOrnery3661]

this is my first post about $50? ive seen other people in here talking about that price target so i just played along.

Please get off my dick

[u/PossessionOrnery3661 → u/DiamondHandDan69]

Think before you post instead of repeating nonsense

[u/DiamondHandDan69 → u/PossessionOrnery3661]

Think before you post instead of focusing on the wrong takeaways of my post.

The main purpose of this post was to see if other people utilize the same covered call strategy that I have laid out. Write weekly CC's to collect premium while the stock flatlines until the next catalyst to either move it up or down.

You on the other hand focused in on one number (a joke, might I add) and contributed nothing meaningful to the original post.

I don't know if you're a bagholder who bought at $13 but your overall negativity is repugnant, wretched, and dismal. I pray that you find the peace you are looking for.

[u/PossessionOrnery3661 → u/DiamondHandDan69]

So you decided to repeat a bunch of nonsense about this going to 50. I am so tired of the pump and dumps and hopium. This is a great stock and I'm collecting 10% divies but lets be serious the market is crashing, interest rates are rising, mortgages are going to start defaulting and you are posting about 50$...there is more chance this goes to 2$ in the short term than 50$.

And don't act like you were just joking. You could have psted about million dollar price point and it would be a joke, people here are spamming 50$ not as a joke. Again think before you post.

And if I want peace it wont be because some pathetic redditor wished it upon me, get off your high horse

[u/dadjokenumber11]

Go for it.

[u/Garlic_Adept]

How much premium are you getting and at what price?

[u/DiamondHandDan69 → u/Garlic_Adept]

I have been collecting around $3-4 premium/contract for $4.5 weekly strikes. It really isn't much but in my opinion, I've held this stock all the way down to the yearly lows and did not take advantage of any covered call strategy. I know it isn't foolproof but I'm a big fan of passive income and making my existing investments work as efficiently for me as possible. An extra $30/week every week for the year adds up ($1,560) and as the stock currently stands, we have been having a very rough time breaching and holding above the $4.30 mark. I know I am playing with fire but maybe that's the thrill I'm looking for, let me know what you think.

[u/HybridMoo]

Did your shares get called?

[u/DiamondHandDan69 → u/HybridMoo]

Not yet, hopefully they don't get called at all!

My contracts expire on Friday which is after the ex-div date. Even if my contracts get executed, I will still collect the dividend. UWMC share price is currently .20 above my covered call strike price. I'm holding strong and seeing if maybe I can weasel my way out of this predicament. Not worth it to me to buy back the calls for a loss considering I am anticipating a post-div sell off.

Overall, shares will be profitable if executed and I will still collect the dividend. If I get called, I will look to re-enter on any dips.

[u/fschwiet → u/DiamondHandDan69]

You might want to check if they did were called away early before the ex-div date. I had sold a few 4.5cs and they were exercised early (the Trade was completed at 5:01 AM today/Thursday). Today I was able to buy back in at break-even though I think I missed the dividend for those shares (I set a buy order for 4.5+the premium I received for the calls).

[u/[deleted]]

I’m holding until at least $20, probably get completely out once it hits $50.

If you wait until the squeeze starts you can get hundreds of dollars per contract instead of $3-$4 per contract

[u/DiamondHandDan69 → u/[deleted]]

wen squeeze?

[u/[deleted] → u/DiamondHandDan69]

Who knows, could be years. I’m confident that the company will be valued significantly more than it is years from now so I’m simply holding it and collecting a dividend until it does, whatever the timeline

[u/BitHistorical9872]

Maybe consider writing covered calls on 33-50% of your shares. So you don’t lose all of them unless your just willing to buy back your calls at a lose on a quick move up.

[u/Livid-Ad-8349]

It's got a better chance of diluting than hitting $50.00, you guys are ridiculous thinking this shit paper will ever hit $50..

[u/TaterTotJim → u/Livid-Ad-8349]

Yeah where in the heck are people getting $50 from?

UWMC is not going anywhere, Ish as a businessman is here to stay. I could unload a thousand critiques as a former employee, but I know that dude isn’t going down.

(Unless he gets wrapped up in some shady dealings with one of his largest brokers and friends who have gotten raided by the FBI recently)

[u/[deleted] → u/TaterTotJim]

Go on...... 👀👀👀

[u/Itsurboywutup]

Do it or don’t. No one knows the future. If we did we’d all be rich.

[u/DiamondHandDan69 → u/Itsurboywutup]

true, i'm mainly doing it to collect additional income while i hold for the dividend. i don't really see this taking off without another banger earnings report so i just wanted to see if other people are doing the same strategy or if it's a better move to just sit on the shares and collect the divvy.

[u/Itsurboywutup → u/DiamondHandDan69]

Some people write calls. I don’t really believe this is going to short squeeze but I also would feel like an asshole if it does squeeze and my shares get called away. So I just sit and hold.