On Friday I sold 20 contracts of the Micron (MU) 5/12/17 $28 Calls when the stock was at $28.17. I sold this In-the-Money Naked Call because I felt MU would fall a little below my $28 Strike Price today. Well MU is down a little today and the stock fell below my Strike Price ($28) so I just bought 2000 shares for $27.80 to cover my Naked Call. When I sold the In-the-Money Call on Friday I put a Risk Factor 5 on the trade but now that I covered the Call I change the Risk Factor to a 1. Here’s the buy order:
Buy 2000 Shares MU @ $27.80
Steve
The Options Coach