About 3:30 PM today I had to run some errands. It was close to the end of the trading day and I was happy with the way the week ended. I’ll be writing my week ending report in the next 24 hours. Before I closed my computer for the trading day I entered a trade to start next week. When I returned home I saw I was executed on my trade. I entered the trade selling a Call on Sarepta Therapeutics (SRPT). Sarepta Therapeutics is a biopharmaceutical company. The Company is focused on the discovery and development of ribonucleic acid (RNA)-targeted therapeutics for the treatment of rare, infectious and other diseases. It’s not my normal sector of interest, but I’ve been watching the company since my son introduced me to it a few months ago. Today the stock was up $1.76 and closed at $34.39. With the stock up big today and up the last 3, I’m hoping for a little pull back next week. This is a Naked Call and I’m $1.50 Out-of-the-Money. I sold 20 contracts of the 3/10/17 $36 Naked Call for a premium of 50¢ for a total of $1000. This trade falls into my “1 Week/1%” strategy with a Rate of Return of 1.4%. I give this trade a Risk Factor 4. It’s a Naked Call trade with a pharmaceutical company that can be very volatile. However, it is $1.50 Out-of-the-Monay so I’ll be watching closely and will cover my call if the stock continues up next week. Here’s the sell order:
Sell to Open 20 SRPT 3/10/17 $36 C @ 50¢ (+$1000)
If this works out the way I think it will, it can be a nice start to the new week. It will give me 1/3 of my weekly goal before the week even starts.
Watch for my weekly report and have a great weekend!
Steve
The Options Coach