BUY BACK CEG March 21 $260 call at $5 or less
The purchase applies only if you sold this same call at $20 or more earlier.
As I mentioned in this week’s update, CEG has some technical support around the $225 per share range. The stock had been flying high but has been under considerable pressure recently. CEG (currently around $227 per share) is down over 35% from the high made in late January.
The company provides nuclear power and now has a considerable offering of natural gas after a recent acquisition and will likely continue to benefit from the increasing electricity demand. It had been flying high in anticipation of more deals like the one made with Microsoft (MSFT) to open the Three Mile Island nuclear plant to provide electricity for a planned data center facility. But that possibility has seemed less likely since the DeepSeek news in late January. The buying got overdone. Now, the selling is being overdone, in my opinion.
A high income was secured with the covered call. The stock has a very good chance of bouncing back in the weeks ahead. By buying back these calls, you still get a sizable income (the earlier $20 call minus the under $5 buyback price) but still hold on to the stock if it rises above the $260 strike price again by March 21st, which is a strong possibility.
By buying back these calls for a far lower price, you can keep most of the income and still hold the stock for the potential of more appreciation and later covered call opportunities.
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