Sold a 10 Contract Call on UAL

I own 1000 Shares of United Airlines (UAL) at $35.62. I just sold a 10 contract 8/21/20 $36 Call. I got a 50¢ premium for $500.

Sell to Open 10 UAL 8/21/20 $36.00 C @ 50¢ (+$500)

Getting a 50¢ premium on a stock that I paid $35.62 give me a Return on Investment (ROI) of 1.4%. This is a nice 1 week return. This trade gets a Risk Factor 1 and it fits into my “1 Week/1%” strategy.

I’m gonna watch how the airlines move tomorrow. There’s some worries that they will have a very weak September. If UAL doesn’t move up tomorrow I’ll probably change this Covered Call into a Triple Play Hedge. This will give me more downside protection.

Successful trading,

Steve

The Options Coach