OXY 10 Contract Covered Call

This morning I bought 1000 Shares of Occidental Petroleum (OXY) at $14.50 and sold a 10 contract Call. I sold 10 OXY 5/29/20 $14.50 Calls for a premium of 50¢. This trade gives me a total premium of $500.

Sell to Open 10 OXY 5/29/20 $14.50 C @ 50¢(+$500)

Getting a $500 premium on a $14.50 stock is a Rate of Return of 3.4%. This trade is a Covered Call on a steady stock so I give a Risk Factor 1.

Always remember, It’s the Rate of Return that matters; how much money you make on your investment!

Successful Trading,

Steve

The Options Coach