Bought 1000 Shares of NEO

On 11/20 I bought 1000 shares of Neogenomics (NEO) and sold a 10 contract Call that expired on 12/18, this past Friday. This was a 1 month option. I like weekly options but NEO only has monthly options.

I bought the stock at $44.95 and sold 10 of the 12/18 $45 Calls. Basically I signed up for the premium, which was $2.05 for $2050. The way the stock was moving I felt strongly I’d be assigned.

This Call expired this past Friday. My profit was exactly what I signed up for. I was assigned so I made the 5¢ on the stock sale for the $50. I also kept the premium of $2050. My total gain for this 1 month deal was $2100. My investment for the 1000 shares at $44.95 was $44,950. My Return on Investment (ROI) was $2100. This is a 4.6% return for the 1 month investment. This is exactly what I look for with a low risk trade.

Neogenomics (NEO) is an operator of a network of cancer-focused genetic testing laboratories. The Company operates in Laboratory Testing Segment. This segment delivers testing services to hospitals, pathologists, oncologists, other clinicians and researchers.

This is an A rated stock and I think the stocks in the medical field have a good future. I say this stock goes higher.

In today’s world, and the market uncertainty, I feel this medical stock is a good bet so I just bought 1000 shares. I bought 1000 shares of NEO at $52.80.

Buy 1000 Shares NEO @ $52.80

I’m gonna watch the stock for a few days to see where it can go before I sell a Call. I’d like to see the stock up a dollar or 2 before and sell the $55 Call. Remember, this stock only has monthly options so I’ll be selling the 1/15/21 or the 2/19/21.

I’m not looking to make any more money this year. As you know I had a fantastic year and for tax purposes I’d like to push any profit into next year. I’d love for the stock to move up slowly and I sell a Call on these shares the first week of the year. But I’ll sell as soon as I see a good deal.

Successful trading,

Steve

The Options Coach