Made a Couple Trades with OXY

On 5/26 I bought 1000 shares of Occidental Petroleum (OXY) at $14.50, and on 5/28 I bought another 1000 shares at $13.90.

I placed 2 separate orders for 10 contract Calls. I placed the orders and hit my gym for an hour. I just got out from my workout and noticed OXY had a run up at about 1pm. I was filled on both orders.

For the shares I own at $14.50 I sold a 10 contract Call to expire on Friday 6/12; I didn’t like the $14.50 premiums expiring on 6/5. I received a premium of 40¢ for $400. This is a Covered Call on a solid stock so it gets a Risk Factor 1.

5/26/20 – Buy 1000 Shares OXY @ $14.50

6/1/20 – Sell to Open 10 OXY 6/12/20 $14.50 C @ 40¢ (+$400)

A 40¢ return on a $14.50 stock is a return of 2.7%.

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For the shares I bought at $13.90 I sold 10 contracts of the OXY 6/5/20 $14.00 Call for a premium of 30¢ for $300. This also is a Risk Factor 1.

5/28/20 – Buy 1000 Shares OXY @ $13.90 

6/1/20 – Sell to Open 10 OXY 6/5/20 $14.00 C @ 30¢ (+$300)

This trade gives me a 30¢ on a $13.90 stock which is a return of  2.1% for a 1 week trade. This fits into my “1 Week/1%” strategy.

I really like both of these trades and I think both will work out nice.

Successful Trading,

Steve

The Options Coach