I just sold a 5 contract Call on Micron. This is a Covered Call.
Since Sept I’ve been bringing in some nice money with Micron (MU).
On 9/5 I sold a Call that I bought in July. This was a $1000 gain. On 9/4 I sold a 10 contract Call for a $750 gain. I bought a 10 contract Call on 7/18 and sold it on 9/16 for a $3000 gain. On 9/27 I sold a Call that I bought on 7/18, another $1000 gain. These few trades brought in a total of $5750.
On 9/6 I bought 500 shares of the stock to hold because the stock was moving well. On 9/30 I started selling Calls on these shares to bring in some money. On 9/30 I sold a Call for $225, on 10/28 I sold one for $500, and on 11/4 I sold one for $300. Remember, these were only 5 contracts Calls. On these 3 Calls I brought in another $1025.
Today I just sold another 5 contract Call with a premium of $1.20. The 5 contract Call had a $600 premium.
Sell to Open 5 MU 12/20/19 $49.50 C @ 1.20 (+$600)
I know this is December and I said I’m not trading but I own these shares so I might as well bring in some premiums. Micron comes out with earnings on 12/18, before this expiration. The stock could go up, or it could go down. It really did not affect my decision to sell this Call. The stock is below where I bought so I would own the shares anyway.
The bottom line is, I’ve had a great run with Micron. I brought is the $5750 listed above, the $1025 by selling the 3 Calls listed above, and now another $600. That’s a total of $7375 in a few months with one stock. That’s the potential of the market! And if I get assigned I’ll make a few more hundred.
I hope everyone is reading all the pages of the Wealth Builder.
Successful trading,
Steve
The Options Coach