I own 300 shares of Netflix (NFLX). 100 are for my Gift Account which I bought for $194.75. I have another 200 shares in my Trading Account; 100 I bought for $313.10 and the other 100 at $333.85. I just sold a 2 contract Call which is covered by the 200 shares in my Trading Account. With the stock up today to $328, I just sold 2 contracts of the NFLX 5/11/18 $337.50 Calls. I received a premium of $1.50 for a total of $300. I went out to $337.50 because I would rather not get assigned but if I do it’s not a big deal. I’ll make a nice profit on the shares I bought at $313.10 and I’d make a few hundred on the shares I bought at $333.85. Either way I’ll keep the $300 premium. This trade is a Covered Call on previously owned stock so it gets a Risk Factor 1.
Sell to Open 2 NFLX 5/11/18 $337.50 C @ $1.50 (+$300)
I just returned from Florida and Wednesday I’m going to Cancun for a week. I’ll on vacation but I’ll post as muck as I can. I’m getting my vacations in because on May 23rd I have to go in for shoulder surgery. I guess I played a little too much basketball in my life. I know a bunch of family and friends who had the surgery and I hear the recovery is no fun. Hoping to be out of the sling by the 4th of July. Wish me luck!
I have 3 trades expiring this Friday. Should be a nice week! Maybe I can get my trip paid for.
Steve
The Options Coach