Sold a Square 10 Contract Naked Call

I just sold a 10 contract Naked Call with Square (SQ). With the stock at $189 I sold the $200 Call for a premium of $1.50 for $1500.

Sell to Open 10 SQ 10/23/20 $200.00 C @ $1.50 (+$1500)

This is a Naked Call. It’s only a 1 week Call, but there’s a lot of news coming this week. This would normally be a Risk Factor 5 but since I went $10 Out-of-the-Money it gets a Risk Factor 4.

Successful trading,

Steve

The Options Coach