I bought 200 shares of Macys (M) at $19.20 toward the close and sold 2 contracts of the M 7/2/21 $19.00 Calls for a premium of 60¢ for $120.
In-the-Money Covered Call
Buy 200 Shares M @ $19.20
Sell to Open 2 M 7/2/21 $19.00 C @ 60¢ (+$120)
If assigned I’ll sell the stock at $19 and lose 20¢. I do this to help get assigned. I’ll still make 40¢ on the deal for a return of 2%.
This trade gets a Risk Factor 1.
Successful trading,
Steve
The Options Coach