I’m holding 1000 shares of Facebook (FB) for a few weeks now and I’ve been selling Calls every week bringing in nice premium. This week I was going to hold off on selling Calls because the market has been moving unbelievable and I figured I’d let the stock go up and hopefully make some money on the stock gain. The market was up earlier but gave back all of it’s gains. While the market is going up and down so is FB so I decided to grab some more premium money. With FB at $111 and change I sold 10 contracts of the $113 Calls expiring this Friday. I brought in a $.60 premium for a total of $600. I really don’t care if I get assigned or not. Facebook does announce earnings next Tuesday the 26th. If I don’t get assigned, I’ll hold the stock thru the earnings report. And hope for the best! I give this trade a Risk Factor of 1. It’s a Covered Call with a previously owned stock. Here’s the option order:
Sell to Open 10 FB 4/22/16 $113 C @ $.60 (+$600)
Did You see what the earnings report did to Netflix? If you read my post on NFLX last week when I sold a Call, you saw I wanted to get assigned, and I’m glad I did. Now that NFLX took a big drop, I’ll be back!
Steve
The Options Coach