Good morning readers! I hope everyone had a great 3 day weekend. I’m getting an early start!
This morning the market opened up close to 100 points. However, Dick’s Sporting Goods (DKS) opened down because of a downgrade by Oppenheimer, from outperform to market perform. Even though DKS opened down it soon went up. I did a Buy-Write with DKS last week and I felt I was going to get assigned but I was not. I wanted to get assigned because DKS has monthly options and not weekly. I like dealing with stocks with weekly! Since I wasn’t assigned and still own 1000 shares, I just sold a 25 day option. I bought the stock at $52.40 and I just sold the 3/17/17 $52.50 Call. I brought in a premium of $1.60 for $1600. This will be a 3% Rate of Return on my investment in 25 days. I’m happy with that! This is a Covered Call on previously own stock so I give this trade a Risk Factor 1. Here’s the sell order:
Sell to Open 10 DKS 3/17/17 $52.50 C @ $1.60 (+$1600)
If you have any questions on weekly and monthly options, send me an email.
Back to work!
Steve
The Options Coach