I made 2 trades, 1 with Micron (MU) and the other with Canopy (CGC).
I bought 1000 shares of MU yesterday and placed an order to sell a Call. The day ended without me getting filled on my Call. I bought the shares at $57.50 and I was filled today on a 10 contract $58 Call to expire this Friday. I received a premium of 60¢ for $600. Yesterday I was trying to get 80¢ but was not filled. I figured with Tuesday coming to an end let me grab $600. If the stock doesn’t move the premiums will be lower tomorrow.
Sell to Open 10 MU 1/17/20 $58.00 C @ 60¢ (+$600)
Mu is a hot stock but I hope I get assigned. With the market moving the way it has been I’m afraid of a pullback. I just want to grab money and move on. This trade gets a Risk Factor 1.
I also bought 1000 shares of Canopy. As you probably know CGC is one of the largest pot growers. I’m not really into the pot stocks but I think this is a good 3 day deal. I bought the shares at $23.75 and sold the $24 Calls. I normally go a little higher with the Strike Price to make more money on the stock assignment but I positioned myself to ensure assigned. If I get assigned I’ll make $250 on the stock.
I sold the 10 Calls for a 60¢ premium. On a $23.75 stock that’s a 2.5% return. On this Covered Call I really want to get assigned. I have no interest in holding pot stocks.
Buy 1000 Shares CGC@ $23.75
Sell to Open 10 CGC 1/17/20 $24.00 C @ 60¢ ($600)
CGC has been moving nicely but I don’t want to hold the stock. Plus the premium is a little high for my liking. This normally means the stock can be volatile. So with the chance of volatile keeping me in these shares I give this trade a Risk Factor 2.
Successful trading,
Steve
The Options Coach