“Sell to Open” UAL & “Sell to Close” MSFT

I own 1000 shares of United Airlines and sold a 10 contract Call at the open. I sold 10 8/28/20 $36 Call for a premium of 40¢ for $400.

Sell to Open 10 UAL 8/28/20 $36.00 C @ 40¢ (+$400)

This trade gives me a ROI of 1.1% and fits into my “1 Week/1%” strategy. It’s a Covered Call on previously owned stock so it gets a Risk Factor 1.

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I bought a 1 contract LEAPS with Microsoft (MSFT) on 6/11/20. This Call still has a lot of time left but I decided to get out. I love taking profit, plus, I wanted to free up money for other positions I’m interested in. I will be back in MSFT very soon. But for now I wanted to lock in this profit.

6/11/20  – Buy to Open 1 MSFT 1/21/22 $195.00 C @ $27.00

8/24/20 – Sell to Close 1 MSFT 1/21/22 $195.00 C @ $42.85

 Profit +$1585 

This is a Return on Investment (ROI) of 58.7%. This is another great example of the power of LEAPS.

Successful trading,

Steve

The Options Coach