Man! What a busy day! About an hour ago I bought 1000 shares of Square (SQ) at $44.65. I didn’t write a post at that time because when I bought stock I also put in an order to sell a $45 Call for $1.05. I felt the stock was going up but it took a while to get executed on my $45 Call for $1.05. I was waiting to report the 2 trades on one post.
Buy 1000 Shares SQ @ $44.65
Sell to Open 10 SQ 1/26/18 $45.00 C @ $1.05 (+$1050)
I picked the $45 Call because I want to get assigned and move on from owning SQ. I received a $1.05 premium on a stock a little below $45 so this more than doubles my desired premium described in my strategy “1 Week/1%.” This trade gives me a premium of 2.3% for a 1 week trade. Plus if assigned I’ll make another 35¢ on the stock sale for $350. If this trades goes well it will be a fantastic trade. It get’s a Risk Factor 1.
Steve
The Options Coach