On February 2, 2021, I bought additional 12 shares of LI (NASDAQ:LI) for our daughter's stock portfolio, paying $30.16 per share. Funds for this purchase were taken from my dad's inheritance fund.
Li Auto Inc., also known as Li Xiang, is a Chinese electric vehicle manufacturer headquartered in Beijing, with manufacturing facilities in Changzhou
Unlike most of my other buys - LI is not a dividend stock. When buying this stock I'm looking at potential value growth.
We are now holding 20 shares with LI
Our average buy price: $31.94
I plan to increase the total share count to 100 in a reasonable time frame (say the end of 2021) and once we have 100 shares start selling covered calls on it to generate extra income.
Just for the illustration:
We could sell a covered call on LI today (February 9, 2021) with expiry on February 19, 2021 (weekly options), with a strike price of $32, and get for that about $0.98 premium. That about 3.25% potential income return in 10 days
80 shares to go!
