A few minutes ago I reported a Call I sold on U S Steel to make a Covered Call. Well, I just did the same with Skechers (SKX). Yesterday I bought 2000 shares of SKX and today I sold a 20 contract Call. I bought the stock for $28.99 and just sold 20 contracts of the SKX 6/30/17 $29 Calls for the premium of 52¢ for $1040 on the 20 contracts. This is an At-the-Money Call so basically I’m in this position for the premium only. Getting 52¢ on a $29 stock gives me a 4 day return of 1.7%. With this Rate of Return this trade fits into my “1 Week/1%” strategy. It is a Covered Call so the trade gets a Risk Factor 1. Here’s the order:
Sell to Open 20 SKX 6/30/17 $29 C @ 52¢ (+$1040)
I have a little more work to do to complete the week.
Steve
The Options Coach