About 5 minutes before the close I was executed on 1000 shares of Facebook (FB) to cover the Call Option I sold earlier. When I sold the Call the stock was at $113 and I just bought 1000 shares at $112.30. I’m happy with that! Here’s the buy order:
Buy 1000 shares FB @ $112.30
Earlier I sold 10 contracts of FB 4/8/16 $114 Calls and received a total premium of $750. This gives someone the right to buy my FB shares for $114 per share anytime between now and this Friday. The market has been down for the last few days and it’s not clear where it might go in the next few days. Because I’m not so confident will go up in the near future I’m hoping I get assigned on these Calls. I would like for FB to hit $114 by this Friday and I lose my 1000 shares to the Call buyer. I like to get into a deal, collect the premium, and make a little on the stock. I sold the $114 Calls. If I wanted to keep my stock because I felt it was going up I would have sold the Call with a higher Strike Price, maybe $115 or $116. Take a smaller premium and hopefully make a larger profit on the stock gain in time. In this situation, unsure where the market might go, and possibly down during the earnings season, I’ll be happy getting assigned. If I get assigned I’ll make $1700 on the stock plus the premium of $750 for a total of $2450 in 3 days. That’s my strategy for this position. I want FB to go up to$114 by Friday. Let’s see how it plays out.
Steve
The Options Coach