ETHA @ $16.24 UNDERWATER $1.09 (6.3% below SS)
50 contracts (5,000 sh) | SS: $17.33 | IV: HIGH
LC: $13 exp 2028-01-21 (entry $9.050/sh)
SP: $16 exp 2028-01-21 (entry $4.879/sh)
HP: $6 exp 2026-06-18 (entry $0.171/sh)
Economics
| Max Loss | $71,709 | (ND $4.34 + SW $10) x 5000 |
| Normal income ref | $4,183/mo | 70% ann ROI on ML |
| Hedge rolling cost | $192/mo | |
| FIGHT CC | $16 call, $0.66 bid | exp 2 Apr 2026 (9d DTE) |
| Conservative CC | $18 call, $0.32 bid | exp 2 Apr 2026 (9d DTE) |
FIGHT Allocation
| Contracts | Income/mo | Net/mo | CC→SS Gap |
|---|
| Cover hedge | 0/50 | $5,333 | $5,141 | $0 |
| Match normal | 0/50 | $5,333 | $5,141 | $0 |
| Full FIGHT | 50/50 | $11,000 | $10,808 | $850 |
FIGHT Options (exp 2 Apr 2026, 9d DTE)
| OTM% | Strike | Bid | $/ct/mo | Hedge Ct | Match Ct | Gap/ct | Gap@Hedge | Gap@Match | Net@Match |
|---|
| 1% | $16 | $0.66 | $220 | 0/50 | 0/50 | $17 | $0 | $0 | $5,141 |
| 2% | $16 | $0.66 | $220 | 0/50 | 0/50 | $17 | $0 | $0 | $5,141 |
| 3% | $16 | $0.66 | $220 | 0/50 | 0/50 | $17 | $0 | $0 | $5,141 |
| 5% | $17 | $0.46 | $153 | 0/50 | 0/50 | $0 | $0 | $0 | $5,141 |
* = cannot fully match normal income with 50 contracts
TRADE RECOMMENDATION (match normal income)
No FIGHT CCs available
Legend
| Max Loss (ML) | Worst-case loss: (Net Debit + Spread Width) x shares. ND = LC entry - SP entry + HP entry. SW = SP strike - HP strike. |
| Normal income ref | Target monthly income: 70% annual ROI on ML / 12 |
| Hedge rolling cost | Monthly cost to maintain the HP (protective put): (30 / HP_DTE) x HP_ask x shares |
| FIGHT CC | Short-dated, near-ATM covered call for income recovery |
| Conservative CC | Standard CC at safe strike (far OTM when underwater) |
| Cover hedge | Min FIGHT contracts to pay for the hedge rolling cost |
| Match normal | FIGHT contracts needed to reach normal income target |
| Gap/ct | Net gap risk per contract: (SS - strike - bid) x 100. Max loss if stock rallies to SS, net of premium received. |
| Gap@Hedge | Total gap risk at cover-hedge contract count |
| Gap@Match | Total gap risk at match-normal contract count |
| Net@Match | Monthly income after hedge cost at match-normal level |