Sold another Block (SQ) Call

This past Monday, Nov 4th, I reported a trade I made selling 2 SQ Call. After buying 200 shares of SQ on May 6th this Call I sold on Monday was the 12th Call I sold on these shares. Please read that post and see all the Call I have sold HERE. It’s important to see how you can continue to make money on the same shares if you sell a Call and not get assigned. With only a few minutes left to the trading week it looks like I’m not going to get assigned again. I decided to get a jump on next week and sell another Call before the Call I sold on Monday expires. It’s a little bit of a gamble but I feel strongly that the stock will not go above my Strike Price of $75 and I will still own the 200 shares to cover the Calls I just sold a few minutes ago. I hope this makes sense. If not, please send me an email and let me know you do not understand exactly what I did and I will explain further.

Below is the Call I just sold:

Sell to Open 2 SQ 11/15/24 $75.00 C @ $1.00 (+$200)

This is a great Grasshopper trade. It’s only with 200 shares of stock and it’s a one week trade. At $200 the premium might not look like much but it is a 1.4% return for the one week trade. This trade fits into my 1 Week/1% strategy. I bought the stock at $71.20. This trade gets a Risk Factor 1.

 

Successful trading,

Steve

The Options Coach