On 6/14 I bought 200 shares of 3D Systems (DDD) at $29.50 and sold 2 contracts of the $29.50 Calls. I was not assigned because the stock dropped back on the horrendous Friday 6/18 we had. As I write the stock is at $28.55, up 60¢ and the market is fully recovered from last Friday.
After doing some research on DDD I decided to buy another 300 shares.
Buy 300 Shares DDD @ $28.58
I now own 500 shares of the stock. I can get a nice premium right now but after looking at the candlestick chart I decided to wait another day.
One of the reasons you do technical analysis is to see if a stock will move as it did in the past. Basically looking for situations where history will repeat itself. While looking at the candlestick chart, moving averages and the Bollinger Bands, I feel DDD will be going up this week, maybe even tomorrow. Of course I could be wrong but I think I saw enough to hold the stock another day or 2 before I sell a Call. Only time will tell.
Always remember technical analysis is not a science. It’s a way of studying a stock and hopefully with what you see you can make a more educated guess on the direction a stock might take. I feel, with what I see, DDD will be going up.
While I’m writing, let me give you a few more trades I made today. These are Master Trades.
With SKLZ and NIO I made 10 contracts trades against shares previously owned.
6/14/21 – Buy 1000 Shares SKLZ @ $20.00
6/21/21 – Sell to Open 10 SKLZ 6/25/21 $20.00 C @ 65¢ (+$650)
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6/14/21 – Buy 1000 Shares NIO @ $46.25
6/21/21 – Sell to Open 10 NIO 6/25/21 $47.00 C @ $1.15 (+$1150)
With WISH I bought 1000 shares and sold an In-the-Money Covered Call. I bought the stock at $12.75 and sold 10 contracts of the $12 Calls
6/21/21 – Buy 1000 Shares WISH @ $12.75
6/21/21 – Sell to Open 10 WISH 6/25/21 $12.00 C @ 1.55 (+$1550)
This premium is 12.1%. If I get assigned I’ll lose 75¢ on the stock sale but my gain will still be 8.2%. I do In-the-Money Covered Call to help get assigned.
If you have any questions on this strategy send me an email.
Successful trading,
Steve
The Options Coach