Covered Call With Kohl’s

This morning B of A upgraded Kohl’s (KSS) from a neutral to a Buy. I liked the price of the stock, candlestick chart and the premiums so I did a Covered Call. I bought 1000 shares at $21.25 and sold a 10 contract Call. I sold 10 KSS 7/10/20 $21.50 Calls for a premium of 50¢. This is a Return on Investment (ROI) of 2.3% for the premium only. This expires this Friday, 3 days away! If I get assigned I’ll bring in another $250.

Buy 1000 Shares KSS @ $21.25

Sell to Open 10 KSS 7/10/20 $21.50 C @ 50¢ (+$500)

This is a Covered Call on a stock that just received an upgrade from B of A. I give this trade a Risk Factor 1 and I hope to get assigned.

Successful trading,

Steve

The Options Coach