Covered Call with Atlas Air Worldwide

With the new administration trade with China is back at a huge imbalance in China’s favor. I just heard a report that China is sending so many goods the shipping companies cannot handle the one way trade demands. The report said that the shippers are sending the containers back to China empty, without US goods, because the goods are stacking up in Chinese ports.

I looked into some of the shipping companies because the report said these companies are ‘making more money than ever.’

None of the stocks I looked at had weekly options. I picked a stock that was rated high and had premiums I liked. I bought 500 shares of Atlas Air Worldwide (AAWW) at $56.90 and sold 5 contracts of the AAWW 2/19/21 $57.50 C @ $2 for $1000.

Buy 500 Shares AAWW @ $56.90

Sell to Open 5 AAWW 2/19/21 $57.50 C @ $2.00 (+$1000)

I really don’t know much about this company but I’ll be looking into more shipping companies over the weekend. This trade gets a Risk Factor 2.

Successful trading,

Steve

The Options Coach