Monday I bought 100 shares of LULU at $356 and sold a 1 contract LULU 11/18/22 $62.50 Call for a premium of $6. Selling this option position gave me a total premium of $600.
This morning LULU opened down and the premium went down. With the feeling LULU will bounce back today I bought my way out of this option position for $1.40 ($140) locking in a profit of $460 in 2 days. If I’m correct and LULU bounces back I will sell another Call with a higher premium.
11/14/22 – Sell to Open 1 LULU 11/18/22 $362.50 C @ $6.00
11/16/22 – Buy to Close 1 LULU 11/18/22 $362.50 C @ $1.40
Profit +$460
If LULU does not get high enough to sell another Call I will hold and sell another Call next week. And I locked in $460 of the $600 I signed up for. Let’s watch and see what happens. This stock is pretty volatile.
Successful trading,
Steve
The Options Coach