This past Friday I sold 30 contracts of the Yelp 8/29/16 $39 Calls. The stock was down a little this morning so I just bought 5000 shares at $38.38 to cover my Call. When I sold the Call it was a Naked Call so I gave the trade a Risk Factor of 5, but with the buying of the stock today it is now a Covered Call. I now give this Covered Call a Risk Factor of 1. At this point I hope Yelp moves higher and goes above my Strike Price of $39. If this happen I’ll get assigned. I’ll keep the premium and make a $.62 on the stock. Here’s the stock buy order:
Buy 5000 shares YELP @ $38.38
Steve
The Options Coach