Sorry I didn’t get this trade in the last post. As soon as I hit send on that post this trade was executed. I bought 2000 shares of Advanced Micro Devices (AMD) on July 26th. I sold a Call and was not assigned. The stock took a little dip and I wasn’t able to get a good premium since. The last few day the stock has been moving. The premiums were not great for the Strike Price I wanted so I went out till next week. I got a 25¢ premium for a total premium of $500 on the 20 contracts. May not sound like much but it’s on a $14 stock. My return is 1.7%. 10 Days….I’ll take it! This is a Covered Call so it’s a Risk Factor1.
Advanced Micro Devices Covered Call
6/26/17 – Buy 2000 Shares AMD @ $14.39
7/12/17– Sell to Open 20 AMD 7/21/17 $15 C @ 25¢ (+$500)
You might be wondering why I’m doing so many Buy-Writes and Covered Calls when my favorite strategy is Naked Calls. When the market is moving the way it’s has been, Naked Calls are very dangerous. When the stocks are moving you want to be covered for protection when the stock involved goes up.
Steve
The Options Coach