I bought 200 shares of Macys (M) on 6/28/21 at $19.20. I sold a few Calls against these shares but was not assigned. Today I sold another Call. I’m trying to get assigned so I sold a $19 In-the-Money Covered Call. The stock is down so I had to go out to 8/20 to get the premium I wanted. I received 75¢ which is a return of 3.9% for the 1 month trade.
In-the-Money Covered Call
6/28/21 – Buy 200 Shares M @ $19.20
7/21/21 – Sell to Open 2 M 8/20/21 $19.00 C @ 75¢ ($150)
For the situation I’m in with the stock down I think this is a good Grasshopper Trade.
Successful trading,
Steve
The Options Coach