I bought 1000 shares of Weight Watchers (WTW) on 6/26/17, I paid $33.40 per share. As soon as I bought the stock it started moving down. It moved down to the point where I couldn’t get a worthwhile premium. The stock stayed down until today. On a down market day WTW is up 75¢ and I was able to get a Call sold with a nice premium. The stock was at $33.45 and I got a 40¢ premium for a day and a half option. This option expires tomorrow. Even though it’s a 1 day trade it still fits into my “1 Week/1%” strategy. 40¢ on a $33.40 stock is a return of 1.2%. I’ll take it! That’s $400 on a 1 day trade. I sold an option on previously owned stock so this trade gets a Risk Factor 1. Here’s the option order:
Sell to Open 10 WTW 7/7/17 $33.50 C @ 40¢ (+$400)
I think I’m done for the day. I have a lot of positions expiring tomorrow. If everything get assigned this will be a great week.
Steve
The Options Coach