I bought 1100 shares of Inseego (INSG) back on 7/28/20 at $12.75. Over the months I’ve sold a number of Calls to bring in some premiums. Lately the stock has been down where I couldn’t get a Call sold with a decent premium. Today, with the stock up I was able to get a Call sold that will expire in January. I sold 11 INSG 1/15/21 $12.50 Calls for a premium of 40¢ for $440.
Sell to Open 11 INSG 1/15/21 $12.50 C @ 40¢ (+$440)
I sold the $12.50 Call on a stock I bought at $12.75. If I get assigned I’ll lose 25¢ on the stock sale. The way the stock has been moving – or not moving – I don’t think I’ll get assigned.
This is a Covered Call on previously owned stock so the trade gets a Risk Factor 1.
Successful trading,
Steve
The Options Coach