With about 30 minutes to go until the close I went down stairs in my home to get a little workout in my gym. It is Friday, so there was also 30 minutes until the close of the week. I had a few positions expiring at the close so I wanted to watch how the week finished. And I also wanted to make a move, so I brought my laptop to the gym. This is the special thing about trading; nowadays you can trade from almost anywhere.
A few days ago I bought 800 shares of Advanced Micro Devices (AMD) and I sold an 8 contract Call. While I was exercising I was watching AMD because the stock was at $29 and the Strike Price of my Call, about to expire, was $29.50. If figured, if the stock was gonna close below my Strike Price of $29.50 I was gonna try to get another Call sold against my 800 shares before the close of the week. I knew if I didn’t get assigned I wanted to sell another Call next week, so I might as well get a jump on next week, and possibly get a better premium. If I sold the Call Friday instead of waiting until Monday there might be a little more Time Value in the premium.
With about 10 minutes left to the trading week, I placed an order to sell 8 CREE 4/12/19 $29.50 Calls at 61¢. I was filled and I received a premium of $488 for the 8 contracts.
Sell to Open 8 AMD 4/12/19 $29.50 C @ 61¢ (+$488)
This is the second Call I sold on these shares. The 1st was a premium of $480 and this one was a premium of $488. Today’s trade is also a Covered Call on a hot stock so it gets a Risk Factor 1. This trade also gives me a 2% Rate of Return for a 1 week trade. For a low risk trade it’s a great example of the type of trade I like to make. It fits into my “1 Week/1%” strategy.
I had a pretty nice week. Watch for my week ending report.
Have a great weekend and enjoy the NCAA basketball games.
Steve
The Options Coach