2 Days ago of bought 2000 shares of Snap (SNAP). I was just filled on selling a 20 contract Call.
I bought the 2000 shares at $16. I got into this trade for the selling of a Call to make a Covered Call. I’m not very high on Snap but it did received an upgrade and a raised price target. I figured it was a good time to make a quick trade for a nice return. I sold a $16 Call so if I get assigned I will not make a profit on the stock. I’m in it for the premium only. I sold the Snap 9/13/19 $16 Call for a premium of 45¢. On the 20 contract this will be a $900 gain.
Sell to Open 20 SNAP 9/13/19 $16.00 C @ 45¢ (+$900)
I really wanted to get a Call sold with the Expiration Date of 9/6/19, tomorrow. I tried for 2 days to get a premium I liked but never got filled. I decided to go out another week to next Friday, and I got the 45¢. 45¢ is a great premium for a 1 week trade. The Rate of Return is 2.8%. I really don’t want to hold Snap so I hope I get assigned to end this deal next Friday. Let’s watch what happens!
Steve
The Options Coach