Hello “Main Street beats Wall Street” readers. As you probably know, I’m on vacation in Fla. at the Daytona Bike Week. I drove down Tuesday with a few friends in a pick-up truck, trailering the bikes. Bike week officially starts today and Daytona is starting to get crowded. This is the 75th anniversary and so far having a great time with some very good friends!
I am not doing much with the market, however I did make a trade with my iPad on my way down. I didn’t post it because I was driving and did not have service on my lap top which is what I do the blog on. I sold 15 contracts on FB to expire next Friday the 11th. As I put is my post the last time I sold a Call on FB, I have 1500 shares. I bought 1000 shares at $111.50 and 500 shares at $100.50. FB has been on a nice move lately and I’ve been selling Calls successfully, collecting premium as it’s moving up close to $111.50, my purchase price. When I sold the Call on Monday the stock was in the 108 area. I sold the $112 Calls and got a $.90 premium. I really don’t care if I get assigned and lose the stock because I’ve been bringing in premiums and at 112 I would have a nice profit on the stock. If the stock stays below 112 and I keep the stock I’ll sell more Calls. On this trade I put a Risk Factor of 1. It’s a Covered Call and wether I get assigned of not, this will be a nice trade. Here’s the order to sell the Call:
Sell to Open 15 FB 3/11/16 $112 C @ $.90 (+$1350)
Check out Gopro (GPRO), it’s been moving a little lately.
Read the following links:
Steve
The Options Coach