Facebook (FB) has been all over the place today. The low was $111.90 and the high was $113.32. When it was at $113 I sold a Call. I felt it was hitting resistance and would not go much higher. If thats the case I would get the highest possible premium for the day. Right now it’s a Naked Call but I’m hoping to buy the stock to cover my Call before the end of the day. As I write the stock is at $112.75 and I would like to buy below $112.50. So I sit and watch while I look for other deals. I sold 10 contracts of FB 4/8/16 $114 Call and I received a premium of $.75 for a total of $750. If this Call Option stays a Naked Call the Risk Factor will be a 4 but I think I’ll be buying the stock today. I don’t like to stay Naked on a stock like FB over night being only $1 Out-of-the-Money. Watch for my follow up email buying the 1000 shares of FB. Here’s the sell order:
Sell to Open 10 FB 4/8/16 $114 C @ $.75 (+$750)
I’m hoping all readers are getting to know the order form. If not, this option expires this coming Friday Apr 8th.
Steve
The Options Coach