A few hours ago, a little after the opening, I put in an order to sell 20 contracts of the Micron (MU) 4/21/17 $27.50 Calls. I put in the order for a premium of 35¢. About an hour ago I was executed on 8 contracts and I’m still waiting to get executed on the other 12 contracts. At this point it doesn’t look good on these 12 contracts. As soon as I was executed on the 8 the stock started down. And it’s been going down ever since, which is good for me because it’s a Naked Call. It would have been nice if I got all 20 contracts. If I did, the premium would have been $700 and I might be looking to jump out because the premium is down to 17¢. Since I only got 8 contracts at this point, and the premium is only $280, it’s not worth getting out. I’ll wait to see if the stock comes back up, I’d like to get the other 12 contracts executed. This is a Naked Call but MU is not a big mover and I’m about 70¢ Out-of-the-Money so I’ll give this trade a Risk Factor 3. Here’s the order:
Sell to Open 8 MU 4/21/17 $27.50 C @ 35¢ (+280)
This trade fits into my “1 Week/1%” strategy. With the stock at 27 and a 35¢ premium it’s a little over 1% for a 1 week trade. Today is only Thursday but tomorrow is Good Friday and the markets are closed and this Call expires next Friday.
If I don’t get executed on the other 12 contracts today I’ll try again on Monday.
Steve
The Options Coach