I previously owned 1000 shares of Weight Watchers (WW). Clearly I’m not buying stock today. On my shares I just sold a 10 contract Call.
I bought 1000 the shares at $39.40. Today the stock is down with everything else. With the stock at $35.40 I sold a 2/28/20 $39.50 Call for a premium of $1.
Sell to Open 10 2/28/20 $39.50 C @ $1.00 (+$1000)
You might say that’s a very nice premium for a 3 day option with the stock $3 below the strike Price. Well, WW is coming out with earnings right after the close. I already owned the stock so I figured I might as well grab a $1000 premium.
I could have gotten a much larger premium this morning but the stock collapsed after being up for an hour or 2 after the open. I was waiting for the stock to move back up because of earnings but it never did.
I’m hoping the earnings are great and I get assigned.
Until this market calms down I won’t be doing much. I will probably remove all Trailing Stop orders on my Wealth Builder positions and get out as I see fit. I’m not panicking yet. I have plenty of money in my margin so I’m not gonna get a margin call.
This is a time to sit back and watch. Most of my positions I don’t mind holding long term if I have to.
Stay tuned!
Successful Trading,
Steve
The Options Coach