I just heard a nice report on Alcoa (AA). With some money in my margin account I decided to do a “Buy-Write.” I bought 1000 shares of the stock for $32.35 and I sold 10 contracts of the AA 6/30/17 $32.50 Calls for the premium of 50¢ for $500. Here are the two orders involved in the “Buy-Write.”
Buy 1000 Shares AA @ $32.35
Sell to Open 10 AA 6/30/17 $32.50 C @ 50¢ (+$500)
Normally when I have this many emails in one day I lose a few readers. My advice is, don’t drop out as a reader. There’s a lot of money to be made in this game. Keep reading as mush as you can and learn. If you never decide to jump in, you can continue to read my post and watch me make money. Sooner or later you’ll dabble. If you do, be very careful!
Steve
The Options Coach