While I was writing my last post I put in an order to sell another Call on Facebook (FB). I have a Call sold on 1000 previously owned shares and yesterday I bought another 1000 shares for the sole purpose of selling a Call. I bought the additional shares for $119.90 but didn’t get executed on a Call order I placed. Today I tried again and I was filled. I sold 10 contracts of the $120 Calls expiring tomorrow for a premium of $.90 ($900). This happened while I was writing the last post when the stock went up to the $120.30 area. Now with the stock down to $119.25 the premium is down to $.40. I could buy my way out of this Call for a $600 profit but I’m going to hold on until tomorrow for the extra $.40 because the way the markets moving I will not mind getting assigned. I give this trade a Risk Factor of 1. This is a low risk trade. It’s a Covered Call on great stock. Here’s the sell order:
Sell to Open 10 FB 5/13/16 $120 C @ $.90 (+$900)
If you have any questions on this trade or the Roll Out trade of my last post please email me.
Steve
The Options Coach