Today I sold a 20 contract Call on Micron (MU). After I sold the call the stock was dropping. I had a basketball workout with the high school kids at 3pm. I left my house at 2. I received $1.00 as the premium for the Call I sold. Before I left my house the premium for the Call I sold for $1.00 was down close to 70¢. I decided to put on a “Buy to Close” order at 70¢. I figured it’s only Monday. If I can grab a 30¢ profit on the 20 contracts, it would be a $600 gain for a day trade. Well, I just got home from the gym and I see I was executed on my “Buy to Close.” Today was a big down day and I’m hoping we get a bounce tomorrow and I can sell another Call. Even if I don’t, I still have $600 locked in and already in my mattress.
Sell to Open 20 MU 9/29/17 $36.50 C @ 1.00 (+$2000)
Buy to Close 20 MU 9/29/17 $36.50 C (-$1400)
Profit +$600
I love making a quick trade for a nice profit. Not bad for a 3 or 4 hour trade.
Steve
The Options Coach