Bought 1000 Shares of LX

On 2/12/21 I sold a 10 contract $15 Naked Call with Lexinfintech (LX). The stock only has monthly options so the Expiration Date is 3/19/21.

This past Friday, 2/19 was also an Expiration Day. Knowing I had this Naked Call going, last week I bought 1000 shares of the stock and also sold a 10 $15 Call to expire on Friday. I brought in a $400 premium on this 3 day Call.

I figured I would buy the 1000 shares to cover my Naked Call expiring on 3/19, and I would also bring in a premium. Which I did. The stock moved up above $15. On this Call I was hoping I wouldn’t get assigned so I kept the stock to Cover my 3/19 Call. The way it worked out I was assigned at $15.

Today the stock is down with the market so I just bought another 1000 shares at $13.80. My 3/19 Call is no longer Naked. There are no more expiration Dates so this will stay a Covered Call.

Buy 1000 Shares LX @ $13.80

I hope this explanation makes sense. I’m writing a little fast because I want to get back to trading. The bottom line is I now have a Covered Call with a stock I love. This position is now a Risk Factor 1.

If you have any questions send me an email.

Successful trading,

Steve

The Options Coach