15 minutes before the close I was executed on a 50 contract Buy-Write. This is a 3 day deal that falls under my “1 Week/1%” strategy. I did an At-the-Money Buy-Write with the stock at $16. I was executed buying 5000 shares of Potash (POT) at $16 along with being executed selling 50 contracts of the 9/30/16 $16 Call for a premium of $.21 ($1020). With the stock at $16 I sold the $16 Call. Potash isn’t a big mover so I’m looking for the stock to pretty much stay where it is until Friday. I hope to get assigned when the Call expires. This would be a great 3 day deal getting a 1.3% return. This is a model deal for my “1 Week/1%” strategy. Another thing I like about this deal is, after looking at the candlestick chart, it looks to me that POT is down to it’s support level. This is a Covered Call on one of the best fertilizer companies in the world. I give this trade a Factor Risk of 1. I’ve been watching this company a long time and watched it do a 3 for 1 split 5 years ago and a 3 for 1 split 3 years before that. Here’s the buy order for the stock and the sell order for the Call:
Buy-Write
Buy 5000 shares POT @ $16
Sell to Open 50 9/30/16 $16 C @ $.21 (+$1020)
It was a busy day! Let’s watch what happens tomorrow.
Steve
The Options Coach