Yesterday I bought 1000 Shares of Barrick Gold Corp (GOLD). I was up in the air whether I wanted to sell a Call or not. I decided to sell a 10 contract Call but I went with a Strike Price I feel will not get assigned. This decision gave me less of a premium. I’d like to hold these shares for a little while. If I do get assigned I’ll just buy more shares.
I bought the stock at $29.55. The stock’s up about 75¢ today, and I sold the $31.50 Calls. This will expire this Friday.
Sell to Open 10 GOLD 8/7/20 $31.50 C @ 20¢ (+$200)
The 20¢ doesn’t seem like much but it is .06% return on my investment for a few days. If I did this every week it would be 35% for the year. That’s premium only! The premium in addition to the stock gain I’m hoping for, I believe, will be a good investment. Believe it or not, this is how you get rick. You will never get rich trying to do a “get rick quick” scheme.
Successful trading,
Steve
The Options Coach