I just sold a Call against my 1000 shares of Twitter (TWTR) with 15 seconds left to the week.
A few days ago I bought 1000 shares of TWTR at $42.90 and sold a $43 Call. This was a Covered Call with 3 days to expiration. I received a premium of 53¢ for $530.
A little while ago, with 1 minute left to the trading week, TWTR was right around my Strike Price of $43. I was watching closely because if the stock was to close above $43 I know I would be assigned and be completely out go this Covered Call. But if it closed below $43 I would keep the $530 premium and keep my 1000 shares of the stock. If it was gonna close below my $43 Strike Price, and I was not gonna get assigned, I wanted to get another Call sold before the weekend. I like selling Calls on Friday because there’s more Time Value and I get a bigger premium.
With 30 seconds left I had my finger on the trigger to sell the Call if the stock was to stay below $43. It was right at $42.97. With 15 seconds left in the trading week the stock went down to $42.85. At that point I felt I was safe to sell the Call and have another Covered Call because it looked like I would not get assigned, I would keep my stock. I don’t know about you but I find this very exciting.
With 1 minute left to the day I had the order placed on my trading screen ready for me to pull the trigger. I had the order set for 10 contracts of the TWTR 8/9/19 $43 Call with a premium of 90¢. I was filled as soon as I hit the button with 10 or 15 seconds in the day.
Sell to Open 10 TWTR 8/9/19 $43.00 C @ 90¢ (+$900)
You can read about the Covered Call I did 3 days ago in my week ending results. This is the first trade to start next week and I feel it’s a good start.
I was torn between selling the $43 Strike Price Call or the $43.50 Call. I received 90¢ for the $43 and the $43.50 I would have gotten 70¢. I went with the higher premium! The way the market’s moving I figured I’ll go with the higher premium and a better chance of getting assigned. Any time I can get assigned and move on to the next deal I go with that option.
I had another great week! Watch for my week ending results.
Steve
The Options Coach