A few minutes ago Gpro dipped below $16. I have a $16 Call on GPRO expiring this Friday. I put in a buy order to buy the stock at $15.90 and I was executed. This makes me very happy! I sold all me stock with a nice profit last week but I left myself Naked on all my Call, I had four. I was completely Naked on a Triple Play Hedge which had me very worried because the stock was over $17 and I had a $16 Call sold to expire this Friday and two $17 Call expiring in the next 2 weeks. All Calls are now covered and I have all the money from last weeks stock sales already locked in. Last week I locked in $21,100 but I was in a dangerous situation because of the Naked Calls. They are all covered and I feel better! My Triple Play Hedge is no longer a Triple Play Hedge because all the Calls are covered. With a Triple Play Hedge I would have one Covered Call and two Naked Calls. These are now three Covered Calls. As I write the stock is back up to $16.30. I would like to see it go up further and get assigned this Friday on my $16 Call. All of these Calls now have a Risk Factor of 1.
Steve
The Options Coach