I just did a “Buy-Write” with Alcoa (AA). I bought 2000 shares at $33.79 and sold a 20 contract 7/7/17 $34 Call for a 40¢ premium. The premium is $800 for the Rate of Return of 1.1% which fits into my “1 Week/1%” strategy. If the stock continues up and I get assigned I’ll bring in another $420. I would love for that to happen. It would make my Rate of Return 1.8%. This trade is a Covered Call so it gets a Risk Factor 1. Here’s the orders:
“Buy-Write”
Buy 2000 Shares AA @ $33.79
Sell to Open 20 AA 7/7/17 $34 C @ 40¢ (+$800)
New readers, make sure you know the “Options Order Form.”
Steve
The Options Coach