🎯 Covered Call Trade Management Alert For $HIMS

Key Takeaways

• Prior covered calls expired worthless, keeping full $0.71 premium
• HIMS shares surged, prompting fresh call writing
• New call: May 15 2026, $48 strike, $0.71 premium
• Wheel strategy yields steady income if stock remains stable
• Risk if HIMS drops below $48, may trigger assignment

Pulse Analysis

Covered calls are a staple of the “wheel” strategy, letting investors lock in option premiums while holding the underlying stock. When a call expires worthless, the writer retains 100 % of the premium and can immediately write another contract, keeping cash flow steady. This approach works best on stocks with modest volatility and a clear price trajectory, as the premium compensates for the limited upside risk. Edward Corona’s recent alert illustrates how disciplined roll‑overs can turn a single position into a recurring income stream.

Hims & Hers Health Inc. (HIMS) has been on a bullish run, posting a strong green day that lifted the share price above recent resistance levels. The company’s recent earnings beat, expanding telehealth subscriber base, and cost‑control initiatives have bolstered investor confidence, making the stock attractive for income‑oriented traders. A rising price also raises the probability that out‑of‑the‑money calls will expire worthless, allowing writers to collect premiums repeatedly. Corona’s timing leverages this upward momentum, aiming to capture premium without sacrificing upside potential.

The new contract Corona proposes expires on May 15, 2026, with a $48 strike and a $0.71 per‑share premium, equivalent to $71 per contract. At current levels, that premium represents roughly a 1.5 % annualized return if held to expiration, assuming the stock stays above the strike. Should HIMS dip below $48, the writer faces assignment risk, but the underlying position can be sold or rolled to a lower strike. For investors comfortable with limited downside, the trade exemplifies how the wheel can generate modest, repeatable yields in a resilient growth stock.