On March 30th I bought 500 shares of Cree (CREE) at $57.70. At that time I sold a 5 contract Call bringing in an 80¢ premium for $400. I did not get assigned and I still own the 500 shares.
This morning with the stock at $57.80 I sold another 5 contract Call. This time I received a 90¢ premium for $450. This Call will expire this coming Friday, April 5th. And it has a Strike Price of $58.
Sell to Open 5 CREE 4/5/19 $58.00 C @ 90¢ (+$450)
This trade is a Covered Call so it gets a Risk Factor 1. Also, this trade fits into my “1 Week/1%” strategy. This Call expires in 5 days and I’m receiving a 1.5% Rate of Return. That’s 1.5% in 5 days not annually!
Steve
The Options Coach