I was just filled on the sale of a 10 contract Call on Dish Network (DISH).
I bought 1000 of DISH back on 9/16/19 at $35.80 per shares. On the same day I sold a Call bringing in a $850 premium. The stock took a dip and I haven’t been able to get a Call sold since. Today the stock is up with everything else. A few minutes ago, with the stock at $34.42, I was filled on a 10 contract Call. Since I bought the stock at $35.80, even with today’s big up day, I’m still not able to get a decent premium for a 1 week option. I decided to go out to the Expiration Date of 11/1/19, which is 18 days away. The option gave me a premium of 55¢ for $550. This is a 1.5% return. This is in addition to bringing in the premium of $850. The 1.5% is not what I look for with an 18 day option but with the 2 premiums it’s a 4% premium from my purchase date of 9/16 to the Expiration Date of 11/1. A 4% return in a month and a half is not bad.
Sell to Open 10 DISH 11/1/19 $36.00 C @ 55¢ (+$550)
When this option expires I hope to get assigned and move on. This trade is a Covered Call on a previously owned stock so it gets a Risk Factor 1.
On 9/16/19, when I bought the stock and sold the 1st Call I also bought a 10 contract Long Call. I hope the stock continues up and I make some nice money on that Call. It doesn’t expire until 6/19/20, it has a long way to go. This Long Call is a 10 contract 6/19/20 $35 Call.
Successful trading,
Steve
The Options Coach