October 29, 2026

Today I opened a new covered-call position against my existing 100 shares of Citigroup (C).

This trade follows a decision I made last week to let my previous covered call expire rather than pay to close it.

I waited for another opportunity, and today I found one that fit my objectives.

Underlying: Citigroup (C)
Shares owned: 100
Transaction: Sell to open 1 covered call

Expiration: November 6, 2026
Strike: $129
Premium received: $1.03 per share
Gross option credit: $103 before transaction fees

I originally acquired my 100 Citigroup shares through assignment of a $129 cash-secured put.

Last week, I had an October 23 $129 covered call outstanding against those shares.

As expiration approached, Citigroup was trading well below the strike, and the option had declined to approximately $0.01.

Rather than spend money to close the position, I allowed the call to expire worthless.

I retained all 100 shares and kept the $57.34 in net premium collected when I originally sold that call.

That left me free to evaluate another covered-call opportunity.

I didn't immediately sell another call simply because the shares were available.

I waited until the premium and strike combination made sense to me.

Today, I sold the November 6 $129 covered call for $1.03 per share, collecting another $103 before transaction fees.

My original stock purchase price and current covered-call strike are identical.

If Citigroup rises above $129 and my shares are assigned, I'll receive $12,900 from the stock sale, matching my original stock purchase amount.

I'll also retain the option premiums collected.

If the call expires worthless, I'll keep the shares and the premium, and I'll evaluate another opportunity.

Either outcome is acceptable to me.

One of the principles I've emphasized in Options Income Journal is that owning shares doesn't obligate me to sell a covered call immediately.

Last week, I could have paid to close the existing call and immediately opened another position.

Instead, I let the option expire and waited.

Today, I was able to sell another call at the same $129 strike and collect additional premium.

That doesn't mean waiting will always produce a better opportunity. Premiums can decline, and the stock can move against me.

But I prefer evaluating each trade on its own merits rather than feeling pressured to keep every share covered at all times.

The objective isn't simply to generate another transaction.

It's to collect income while accepting assignment outcomes I'm comfortable with.

Although the $129 strike matches my original stock purchase price, the shares can still decline substantially.

The premium provides only limited downside protection.

And if Citigroup rallies significantly above $129, the covered call limits my participation in that upside.

Those are trade-offs I considered before opening the position.

I'm comfortable selling my shares at $129 if assigned.

This was a straightforward transaction.

I owned the shares, waited for an acceptable opportunity, and sold a covered call at a strike where I'm comfortable accepting assignment.

Another $103 in gross premium, without lowering my strike or purchasing additional shares.

I'll monitor the position as the November 6 expiration approaches.

And as always:

I have a strategy, but I don't have a quota.

There will always be another trade.

— Options Income Journal

This alert documents my actual completed transaction and reported execution price. The $103 premium is before transaction fees, and final net proceeds will be reflected in the weekly Journal.

Option prices, spreads, and underlying stock prices can change materially after execution. I don't chase trades when the economics change.

Options Income Journal documents my personal trading activity for informational and educational purposes only. It is not investment advice, a personalized recommendation, or a trading signal.

Covered calls involve risk, including assignment, limited upside, and substantial losses if the underlying stock declines. Option premiums are cash flows, not total investment profits. Past results do not guarantee future performance.