It was not a very big week as far as trades coming to a conclusion so there wasn’t much profit, but I was in the plus column. I only had 1 trade end which involved the 1st leg of my “Triple Play Hedge” on Weight Watchers (WTW). The 1st leg is always a Covered Call. I bought 1000 shares of WTW at $25.93 and sold 3 Calls to make the “Triple Play Hedge.” The 1st Call was a 10 contract Call with the Strike Price of $26, expiring this past Friday. The stock went above the Strike Price so I was assigned. I bought the stock at $25.93 and was assigned at $26 for a small profit of 7¢. The 1st leg of the “Triple Play Hedge” I normally sell the 1st Call At-the-Money so if assigned there’s not much profit on the stock sale. Which is true in this case.
Besides the 7¢ on the stock I also keep the premium of the 1st Call, which was 55¢ for a total of $550. Here are the orders:
Buy 1000 Shares WTW @ $25.93
Assigned 1000 Shares WTW @ $26
Profit +70
Sell to Open 10 WTW 6/2/17 $26 C @ 55¢ (+$550)
Expired 10 WTW 6/2/17 $26 C
Profit +$550
I hope everyone had a great weekend!
Steve
The Options Coach