Filled On A Twitter “Buy-Write”

A little earlier I placed an order to buy 1000 shares of Twitter (TWTR) and sell a 10 contract Call. I was just filled.

I already have a 10 contract Covered Call with TWTR expiring tomorrow. This position is over $1 In-the-Money so it looks like I’ll get assigned. With this in mind I did another Covered Call for next week.

I bought another 1000 shares at $28.30 and sold 10 contracts of the TWTR 5/1/20 $29 Call for a premium of $1.75 ($1750). TWTR has been doing pretty well lately so I think this trade will work out well.

Twitter Buy-Write

Buy 1000 Shares TWTR @ $28.30

Sell to Open 10 TWTR 5/1/20 $29.00 C @ $1.75 (+$1750)

This is a Covered Call on a stock that’s doing very well so the trade gets a Risk Factor 1.

Successful Trading,

Steve

The Options Coach