I just made the 1st trade of 2020.
If you didn’t read my last post, “Happy New Year!” I will say it again, Happy New Year! Here at Main Street beats Wall Street we are looking for a great 2020. Let’s hope we can make that happen.
I’m being pro-active to help make my goals for 2020 come true. I just sold a 10 contract Call on Micron (MU). I entered the trade as a Buy-Write with 2 separate trades. I placed a order to buy 1000 shares of MU at $54.80, and I placed a trade order to sell 10 contracts of the 1/10/20 $55.50 Calls for a premium of 80¢.
I was filled on my order to sell the Calls, but still waiting to get filled on the buying of the 1000 shares of the stock to make this a Covered Call.
Sell to Open 10 MU 1/10/20 $55.50 C @ 80¢ (+$800)
This trade will expire next Friday. It’s a little more than a week, so the trade fits into my “1 Week/1%” strategy. If I get filled on the stock order at $54.80 this Call gives me a return of 1.4%.
When the Call was filled the stock was at $54.75. As soon as I’m filled on my stock order I’ll sent out another notice.
At the moment this is a Naked Call with a Risk Factor 3. It’s a 3 and not a 5 because I have an order in to buy the stock. As soon as I’m filled this will become a Risk Factor 1 because it will be a Covered Call.
Let’s hope this trade is the beginning of a great year.
Successful trading,
Steve
The Options Coach