I was just filled on a 10 Contract Call with Jabil (JBL).
On 11/27/19 I bought 1000 shares of JBL at $39.08. JBL is a great stock with an “A” rating. When I bought the stock I also sold a 10 contract Call. That Call expired last Friday and I wasn’t assigned. Today I sold another Call. I wasn’t sure if I wanted to sell this Call or not because they are reporting earnings next Wednesday, a week from today. I didn’t see an option I liked to expire this Friday so I sold one to expire next Friday, which will be after earnings. Because of earnings I got a nice premium. I’m really not worried about their earnings; they’re a great company.
With the stock at $39.65 I was filled on my Call. I sold 10 contracts of the 12/20/19 $42 Calls. I went out on the Strike Price because I think they will report good earnings and the stock will go up. The $42 Strike will give me nice upside if my prediction is correct. If the stock doesn’t go up I’m still getting a nice premium of 65¢. If I get assigned this will be a great trade. I’ll make a $650 premium, plus another $2.92 on the stock for a $2920 gain.
Sell to Open 10 JBL 12/20/19 $42.00 C @ 65¢ (+$650)
This is a Covered Call on a great stock with previously owned stock, so this trade gets a Risk Factor 1.
This is another example where I’m not looking for trades, but I own the shares, so I might as well bring in some cash by selling Calls.
Successful trading,
Steve
The Options Coach