This week I bought 1000 shares of Square (SQ). On 11/12 I bought 500 shares at $183.75 and tried to get a Call sold that I liked but was not successful.
The stock pulled back a little and on 11/16 I bought another 500 shares at $176. At this point I own 1000 shares at $179.88.
As I was trying to get an attractive Call sold I never reported the buying of the stock because I wanted to report the complete Covered Call. This morning the stock popped and I got filled on a 10 contract Call that I like. I sold 10 SQ 11/20/20 $185 Call for a premium of $3.50 for $3500.
Buy 1000 Shares of SQ @ $179.88
Sell to Open 10 11/20/20 $185.00 C @ $3.50 (+$3500)
This is a Covered Call on a stock that I love. This trade gets a Risk Factor 1. As usual I hope to get assigned.
Visit Main Street beats Wall Street.
Successful trading,
Steve
The Options Coach