On August 31, I bought back TRON’s 6 JAN’28 7.5C: filled at $0.45, banking +$129.17 in realized P&L. The pledge is released and the stock is free again — no rush to sell, I will wait for the right price.
1. Where This Leg Came From
TRON was a heavy position I started building in July 2025. On August 19, during an intraday surge of 12.33%, I trimmed 2,000 shares at $1.69 (review: “Cutting TRON on the Rally”). After that trim, the position looked like this:
- 2,300 shares of stock (cost $2.08)
- 17 JAN’28 5C (sold at avg $0.55, collecting $935 in premium)
- 6 JAN’28 7.5C (sold at avg $0.68, collecting a net $403.64 in premium) ← the leg closed today
The 7.5C was a far-OTM covered call put on during the accumulation phase. With a $7.5 strike far above the stock price at the time, the plan was simply “collect premium + let time decay do the work.”
2. Why Close Now
Three reasons, in order of importance:
- Release the pledge. While the 7.5C was open, the corresponding 600 shares were effectively pledged — to sell the stock, I had to unwind the option first. Now the shares are completely free: I can sell at my target price directly, without dealing with the option.
- The premium has been collected. $0.68 → $0.45 is $0.23 per contract. A far-OTM, far-dated call has thinner and thinner time value left; the marginal benefit of keeping it is shrinking fast.
- The stock deserves a better price. TRON already had one rally to $1.69 where I trimmed. More rebound windows are coming. With the stock unlocked, I can wait calmly instead of being pushed around by the option’s expiration rhythm.
3. The Ledger
📒 Ledger detail (click to expand)
| Item | Value |
|---|---|
| Contract | TRON JAN 21 ‘28 7.5 Call |
| Quantity | 6 contracts (Short Call) |
| Avg entry | $0.68 (net premium received $403.64) |
| Exit price | $0.45 (buy, limit order GTC) |
| Exit cost | $270.00 + commission $4.47 |
| Realized P&L | +$129.17 (≈ +$165 SGD, after fees, broker settlement basis) |
| Return | +32% (on premium received) |
Spread basis: $0.68 − $0.45 = $0.23/contract × 600 shares = $138.00; after round-trip fees, the broker-settled figure of +$129.17 is the one that counts.
4. The Remaining 17 5C
Same strategy, timed exits: keep collecting time value, and buy back in batches when the premium gets thin — or when I want to free the corresponding shares. No top-picking, no panic; act when the price is right.
TRON is a low-liquidity name with wide option spreads — no rush. I give the market a price; if it fills, good; if not, I keep waiting.
5. Disciplines Carried Forward
- Options are tools, not shackles. Selling covered calls is fun, but keep asking: is this option still holding my stock hostage? Is the remaining time value worth giving up the flexibility of the shares?
- The timing of the exit often matters more than the entry. Be clear why you sell when you open, and be even clearer why you buy back when you close. This “buyback” was buying freedom.
- Opportunity cost first. For low-liquidity names, no premium is thick enough to justify locking up capital. TRON is reduce-only, close-only — every leg unwound is one step in that direction.
Sometimes spending a little money to buy back your freedom is the best trade of all.
Personal trading journal, not investment advice.