I liked the way the Weight Watchers (WTW) charts looked for a quick “Buy-Write” and an exit. I bought 1000 shares of WTW at $45.50 and sold 10 contracts of the WTW 10/27/17 $45.50 Calls for a 90¢ premium ($900). I’m not looking to make any money on the stock. That’s why I sold the Call At-the-Money. I’m in this play for the premium only. The premium only is giving me a 1.9% Rate of Return for a 1 week trade. This trade fits into my “1 Week/1%” strategy. Since this is a 1 week Covered Call it gets a Risk Factor 1.
Weight Watchers “Buy-Write”
Buy 1000 Shares WTW @ $45.50
Sell to Open 10 WTW 10/27/17 $45.50 C @ 90¢ (+$900)
Steve
The Options Coach