With Weight Watchers (WTW) on a great run after earnings I’m staying involved. On Friday I owned 2000 shares and all shares were involved in Covered Calls. 1000 shares were assigned at $44 and the other 1000 shares are involved in a Covered Call with a Strike Price of $49, expiring this coming Friday. With the way the stock has been moving I feel these shares will also be assigned. I feel there’s still room for the stock to go higher. With this feeling I just bought another 1000 shares at $48.40 to make my position 2000 shares again. I would like to hold these shares without a Call sold against them until the stock goes above $49, which can happen today. Once they go above $49 I’ll consider selling a Call. At that point I’ll sell the $50 or $51 Calls. I’ll try to make a little capital gain on the stock.
Buy 1000 Shares WTW @ $48.40
Steve
The Options Coach