Sold a Square Covered Call

Back on 9/1 I bought 1000 shares of Square (SQ) at $169. Along with all tech stocks SQ pulled back last week. Today with the stock up $11, and selling at $156, I sold a 10 contract Call. With the stock lower than where I bought I couldn’t get the premium I wanted, but I did get one sold.

I sold 10 SQ 9/18/20 $170 Calls for a premium of 80¢ for $800. It’s not great for a stock I paid $169 for, but I’ll take the $800 instead of being idle on the shares I own.

Sell to Open 10 SQ 9/18/20 $170.00 C @ $80¢ (+$800)

This is another Covered Call on a great stock. Also, they were previously owned shares so it gets a Risk Factor 1.

Successful trading,

Steve

The Options Coach