I bought 1000 shares of Weight Watchers (WTW) on Monday with the hope of selling a Call. WTW has been moving up lately so I held the stock to hopefully get a higher premium as the stock went up. Well, the stock didn’t go up. In fact it went down for 2 days. Today it recovered and it’s up over a dollar. A few minutes ago I was executed on a WTW 10 contract $33.50 Call for the premium of 50¢. I bought the stock for $33.40. The 50¢ premium gives me a Rate of Return of 1.5% and this trade fits into my “1 Week/1%” strategy. This is a Covered Call on stock I bought this Monday so the trade gets a Risk Factor 1. Here’s the order:
Sell to Open 10 WTW 6/30/17 $33.50 C @ 50¢ (+$500)
Steve
The Options Coach