I was just filled on a 10 Contract Call on shares of Square (SQ) I own.
Yesterday, in the post reporting a sale of a 10 contract Call on AMD, I mentioned I placed an order to sell a Call on SQ. I wrote:
I also have an order in to sell a 10 contract Call with Square (SQ). I bought 1000 shares on 10/1/19, sold a Call, and was not assigned. Since I still own the shares I’m trying to get another Call sold. I’m going for a 10/18/19 $63 Call for a premium of 75¢. I’ll let you know as soon as I get filled.
Well, the day closed and I was not filled on that order. I guess I was getting a little greedy with a 75¢ premium. Today SQ opened up close to $1. With the stock up around $62.90 I decided not to go with the $63 Strike Price. I went with the $63.50 Strike. With the stock up I could have gotten about 80¢ for the $63 Strike Price, but I decided to go with the $63.50 Strike for a premium of 65¢. I like the chances of the stock going a little higher so I took the $650 with the possibility of making more on the stock if I get assigned. I bought the stock at $62.75 so if I get assigned at $63.50 I’ll make another 75¢ on the stock sale for $750.
Sell to Open 10 SQ 10/18/19 $63.50 C @ 65¢ (+$650)
I might have jumped the gun a little on this trade. As I write the stock is up to $63.40 and the premium is up to 85¢. No problem!
This is a Covered Call on previously owned stock so the trade gets a Risk Factor 1. This is a low risk trade on a very good stock.
This week is shaping up to be a nice one!
Successful trading,
Steve
The Options Coach