Square 5 Contract Covered Call
About an hour ago I bought 500 shares of Square (SQ) at $228.40. I placed an order to sell a 5 contract Call but was never filled because the stock dropped as soon as I bought the stock. The stock started to recover but I still lowered my premium to insure a sale. I lowered the premium from $4.50 to $4 and I was just filled. I sold 5 contracts of the SQ 4/9/21 $230 Calls for a premium of $4 for $2000.
Buy 500 Shares SQ @ $228.40
Sell to Open 5 SQ 4/9/21 $230.00 C @ $4.00 (+$2000)
I like SQ and I think it’s at a good price. The RSI is at 50 and stock is right in the middle of the Bollinger Bands. This trade gets a Risk Factor 1.
Between today’s trades and the trades I made last week to expire this Friday, I’m over my weekly goal with incoming premiums.
CORRECTION
Earlier I reported a trade with AMAT. I posted that I bought the stock at $42.40 and sold the $43 Calls. The numbers are actually $142.40 on the stock price, and I sold the $143 Calls. I was off by a hundred bucks. Sorry!
Successful trading,
Steve
The Options Coach