Filled on a Few More Covered Call Trades

Most readers know Naked Calls are my #1 strategy, but now is not the time! With the market moving the way it is I highly recommend covering your Short Calls, unless you go a bit Out-of-the-Money and take a much smaller premium.

At this time I want to be covered because the market can continue to move up. But it could go down! Take a look at my post Results Week Ending 6/26/20. I put a snapshot of the Daily Candlestick Chart of the DOW Jones. I showed that the 8 Day Moving Average (MA) was coming down to the 50 Day MA. The question is, will the 8 Day MA bounce off the 50 Day MA and  continue up, OR, will it go south of the 50 Day MA? The day after the session when they touch, I feel, will be a telling day. The daily candles have been staying between the 2 MA lines for the last week. I believe there will be a break-out one way or the other.

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This morning I was filled on more trades.

I previously owned 300 shares of Skyworks Solutions (SWKS) at $130. I was filled on a 3 contract Call.

Sell to Open 3 SWKS 7/2/20 $130.00 C @ 75¢ (+$225)

I was also filled on a 1contract $377.50 Call with Nvidia (NVDA) against the shares I owned.

Sell to Open 1 NVDA 7/2/20 $377.50 C @ $5.25 (+$525)

Yesterday I bought 1000 shares of Peloton (PTON) at $56.57. I tried to get a Call sold but was not filled. This morning I was filled on 10 PTON $57 Calls.

Sell to Open 10 PTON 7/2/20 $57.00 C @ $2.05 (+$2050)

Micron (MU) came out with great earnings yesterday. I bought 1000 shares at $51.75 and sold 10 $52 Calls.

Buy 1000 Shares MU @ $51.75

Sell to Open 10 MU 7/2/20 $52.00 C @ $1.00 (+$1000)

All of these trades gave me nice premiums and all are a Risk Factor 1.

Draftkings is still well below where I bought and I’m trying to get a Call sold to expire next Friday. I’m going with next Friday because I cannot get a good premium for this week.

Successful trading,

Steve

The Options Coach