If you are following my trades closely you saw I jumped out of a Micron (MU) trade today. On Tuesday I sold a 50 contract Call and today, 2 days later, I got out with a $500 profit. A few minutes ago I sold another Call. This was a 50 contract $18 Call that will expire on 11/4/16 which is 16 days away. I received a premium of $.22 for $1100. It’s a little less than what I look for but it’s still a 1.2% Rate of Return in 2 weeks. Not bad! This is a Covered Call on a previously owned stock so I give the trade a Risk Factor a 1. Here’s the trade order:
Sell to Open 50 MU 11/4/16 $18 C @ $.22 (+$1100)
The main reason for this trade was to give me a little insurance if the stock goes down. I got in on the stock at $17.78 and I sold the $18 Strike Price. I’m looking to get assigned and move on from MU.
Steve
The Options Coach