Sold a 10 Contract Call with Starbucks
I bought 1000 shares of Starbucks (SBUX) 5 minutes at $81.70. I sent out a post reporting this trade. I said I was hoping for the stock to hit $82 in the next few minutes. Well, here we are 5 minutes and the stock blew through $82. I just sold a 10 contract 8/28/20 $82 Call for a premium of $1.10. for $1100.
Sell to Open 10 SBUX 8/28/20 $82.00 C @ $1.10 (+$1100)
I think this stock will go higher but I’m in it for the $1100 premium and make $300 on the assignment. This is a very safe trade! It gets a Risk Factor 1. As I write the stock is up to $82.45. Again, I want to get assigned! I’m in it for the $1400 with premium and stock sale. If this happens it will be a ROI of 1.7% for the 4 day play. This is the type of trade I’m in this game for.
I will have an Opportunity Lost on this one….thats what I signed up for!
Successful trading,
Steve
The Options Coach