Yesterday I wrote that I bought 1000 shares of FB very close to the close of the market. I wanted to sell A Covered Call on the shares but I didn’t get a good opportunity. This morning FB was up to $99.90. I bought at $96.36. With a nice gain and the premiums much more attractive this morning than yesterday I just sold a Call. I sold 10 contracts of FB $100 Calls expiring this Friday and I received a premium of $1.15. On the 10 contracts (1000 shares) thats $1150. Here’s the order:
Sell to Open 10 FB 1/15/16 $100 C @ $1.15
If FB continues to move and goes above $100 and is still above $100 this Friday I’ll get assigned. If that happens I’ll make $3.64 on the stock. On the 1000 shares the stock profit would be $3640 and the premium of $1150 would give me a profit of $4790. That would be incredible! I like to lose the stock most of the time and this is one of those times. If the stock doesn’t hit $100 I keep the stock, keep the $1150 premium and sell another Call when the opportunity best presents it’s self. For this trade I put a Risk Factor of 1. A Covered Call on a previously owned stock like FB is a low risk trade.
On a different not I started a new page. It’s in the top menu bar. It’s called “Message of the day.” I am very cognizant of the volume of my trades and the amount of emails I’m sending. In an attempt to send less emails when making a lot of trades I made a message page. This page will be for lessons, Ideas, comments and maybe a report on a trade made or any other info I want to get to you. You can check the blog site at your convenience to see any message I wrote. Hopefully this will cut down on the emails you receive leaving the emails to trades.
There’s a new message in “Message of the Day” now.
Watch to see how the FB trade works out. This can be interesting! I would love to put the $4790, you know where. No! not there…… in the mattress!
Steve
The Options Coach
Your making me crazy with this stuff…. I’m loving it though