Going into the close I was just filled on a 1 contract trade.
I bought 100 shares of Zoom (ZM) at $409.50 and sold a 1 contract Call. I sold 1 ZM 11/13/20 $410 Call for a premium of $11 for $1100.
Buy 100 Shares ZM @ $409.50
Sell to Open 1 ZM 11/13/20 $410.00 C @ $11.00 (+$1100)
I also own another 400 shares of ZM at $508. After the vaccine announcement, ZM being a COVID stock, dropped over $100. These shares are too low to get a Call sold with a decent premium so I’ll just have to wait. In the mean time I bought another 100 shares at $409.50 to sell a Call for a nice premium. If I get assigned I’ll remain owning 400 shares. If I Don’t get assigned I’ll own 500 shares at an average price of $488.30 going into next week.
This trade gets a Risk Factor 2 because of the volatility of Zoom.
Successful trading,
Steve
The Options Coach