I bought 500 shares of Nvidia (NVDA) at $527 and sold a 5 contract Covered Call.
I sold 5 NVDA 11/13/20 $530 Calls for a premium of $9. This gave me a total premium of $4500.
Nvidia “Buy-Write”
Buy 500 Shares NVDA @ $527.00
Sell to Open 5 NVDA 11/13/20 $530.00 C @ $9.00 (+$4500)
As usual I would like to get assigned. Please note, on Monday I also sold 5 $520 Puts for a $3000 premium. If I get assigned on today’s Buy-Write my $520 Put will expire without me having to buy the additional shares. If I get assigned on this Buy-Write I’ll lock in the $3000 from the Put, I lock in the Buy-Write premium of $4500, plus I’ll make $1500 on the stock sale from the assignment.
Today’s Buy-Write position is a Covered Call on a very good stock so this trade gets a Risk Factor 1.
Any questions send me an email.
Successful trading,
Steve
The Options Coach