As I finished my last post the Dow started moving up fast and it jumped 150 points in a very short time. I’m not sure why but I decided to get back in the game. I bought 1000 shares of Facebook (FB) with the thought of selling a Call. I got in the stock at $111.50. Earlier in the week FB came out with record braking earnings so I feel comfortable owning the stock. It really became the new superstar stock! Here’s my buy order:
Buy 1000 shares FB @ $111.50
After I was executed with my buy order the stock kept moving up. With the stock up to $113.10 I decided to sell a 3 day Call with the Strike Price of $114. This Call gave me a premium of $1.00. With the way the market has been moving who knows what tomorrow will bring. If the market goes up the odds are FB will blow through my Strike Price of $114. But we all know too well the market could easily go down. Either way I like FB for this trade. Since FB is a superstar stock and this is a Covered Call I give this a Risk Factor of 1. Here’s the option sale order:
Sell to Open 10 FB 2/5/16 $114 C @ $1.00 (+$1000)
If you are new to “Main Street beats Wall Street” I now have links. If FB blows throughs the Strike Price I have an opportunity lost. To under this order go to the following links:
It feel good to be back! Stay tuned to see how these trades work.
Steve
The Options Coach
Hey Steve,I have to tell you how much I’m enjoying your Blog. As you know I got out of trading options about 20yrs ago,but thanks to the educational information in your Blog I’m back in.Even with the market being as volatile as it’s been I have been able to show a profit for the last three weeks that i have been back in.
Thanks Coach
Oh by the way,do you know where I can get a mattress.
lol!