I just sold 20 contracts of the Micron (MU) 5/12/17 $28 Calls for a premium of 50¢. I had a $28 Covered Call which was expiring at the close today. It was clear the stock was gonna close above my Strike Price and I would be assigned which would clear up some margin buying power. With 1 minute till closing I sold another $28 Call. The stock closed at $28.20 so I’m 20¢ In-the-Money. The stock has been moving above and below the $28 mark so I’m hoping on Monday that trend continues so I can get this Naked Call covered. Because the stock is 20¢ In-the-Money I give the trade a Risk Factor 5. Here’s the order:
Sell to Open 20 MU 5/12/17 $28 C @ 50¢ (+$1000)
Happy Cinco de Mayo! Have a great weekend!
Steve
The Options Coach