Sold a 1 Week, 10 Contract Call on UAL

On Monday I bought 1000 shares of United Airlines (UAL) at $24.75 and sold a 10 contract $25 Call to expire tomorrow. As I write the stock is at $24.10. It look like I will not get assigned tomorrow.

With the feeling I will not get assigned I sold another 10 contract Call to expire next week. If I don’t get assigned tomorrow the 1000 shares will be used to cover the Call I just sold. At the moment this Call is Naked! If I do get assigned tomorrow I’ll buy another 1000 shares to cover this Call.

The Call expiring tomorrow gave me a premium of $1.40 for $1400. The Call I just sold gave me a $1 premium for another $1000.

Sell to Open 10 UAL 5/15/20 $25.00 C @ $1.00 (+$1000)

Let’s watch to see how this plays out.

Successful Trading,

Steve

The Options Coach