I know it’s only Wednesday, but I like the way this week is shaping up. Earlier I bought 200 shares of Contextlogic (WISH) and planned on selling a Call to expire Friday, but the stock dropped a few cents before I was filled. I decided to change the order and sell a Call for next Friday. I bought 200 shares of WISH at $13.65 and sold a 2 contract WISH 7/2/21 $14 Call for a premium of $1.25 for $250.
Buy 200 Shares WISH @ $13.65
Sell to Open 2 WISH 7/2/21 $14.00 C @ $1.25 (+$250)
This premium is a return of 9%. This is a new stock and this is a very high premium. I give this trade a Risk Factor 2.
I have 3 positions going with WISH. I have a 10 contract In-the-Money Covered Call with the Strike Price of $12. I have a 10 Contract Naked Call with the strike Price of $17. And I have the Grasshopper Covered Call above expiring next week.
Successful trading,
Steve
The Options Coach