A little earlier I sold 10 Naked Calls on Weight Watchers (WW) with the stock at $39.25. These Calls have a Strike Price of $39.50. At that time I placed a “Buy Stop” order at $39.40. My “Buy Stop” order was just triggered. I now have a Covered Call with WW expiring this coming Friday..
Buy 1000 Shares WW @ $39.40
My original trade had a Risk Factor 3. Now that It’s a Covered Call this position now has a Risk Factor 1.
Successful trading,
Steve
The Options Coach