I keep repeating myself, “I don’t like owning stock.” But if I do I like Netflix (NFLX) and Facebook (FB). Well, I feel FB had a pretty good pullback in the last 3 sessions. I feel it can have a little bounce in the next day or so. I was going to do a “Buy-Write” so I bought the stock and as I was looking for a Covered Call to sell the stock started to move so I held off on the Call to see where the stock might go. I got in at $96.36. I’ll watch and wait for a good opportunity to sell a Call. For the stock I’ll give this a Risk Factor of 2. I think it’s low risk but there’s always a chance for stock to go down. Here’s the order:
Buy 1000 shares FB @ $96.36
I love selling Calls, both Covered Call and Naked Calls. If I do a Covered Call I like to lose my Stock. I want the stock to go up past the Strike Price and get assigned and move on to the next deal. I know books don’t agree with me. They say to do what ever it takes to keep your stock. Not me! Give me my premium and off to the next deal. This is why those traders are writing books. I guess there strategy isn’t working so well. Watch tomorrow. I don’t think I’ll get the Call sold today. The market’s starting to go up and FB’s is also moving up. I’ll wait for a better premium tomorrow.
As I’m writing NFLX is also going up. I might get another Call sold on my 500 shares that are freed up.
Steve
The Options Coach