Using the Mid-Contract Unwind Exit Strategy to Achieve an 8.4%, 25-Day Return

Core Insights - The article discusses the successful implementation of the mid-contract unwind (MCU) exit strategy in covered call writing, achieving an 8.4% return over 25 days [1][7]. Group 1: Strategy Overview - The mid-contract unwind exit strategy involves closing both legs of a covered call trade and using the cash generated to initiate a second covered call trade with a different underlying security, thereby creating an additional income stream [2][7]. - The trades analyzed involved SoFi Technologies, Inc. (SOFI) and ACM Research Inc. (ACMR), showcasing the effectiveness of the MCU strategy [1][3]. Group 2: Trade Details - The initial trade for SOFI was executed on June 24, 2025, with an entry price of $15.74, followed by selling calls at a premium of $0.76 [4][5]. - The exit for SOFI occurred on July 9, 2025, when shares were sold at $20.00, resulting in a per-share gain of $4.26 [6][12]. - For ACMR, shares were bought at $29.00, and calls were sold at a premium of $0.52, with shares later sold at $30.00 [5][12]. Group 3: Financial Outcomes - The realized cash profit from SOFI trades amounted to $460.00, while ACMR trades generated a profit of $760.00, leading to a combined profit of $1,220.00 over the 25-day period [12]. - The maximum investment cost was $14,500.00, resulting in a final realized return of 8.4% [12].