I’ve really had enough of holding my 2000 shares of Advanced Micro Devices (AMD). I bought the shares at $14.39 and I’ve been holding on since 6/26/17. It’s $2.50 below where I bought and I can’t even get a decent premium for a Strike Price where I wouldn’t take a loss with assignment. I was just gonna sell today but than I decided to sell a Call and bring in a little money. I do work on margin, so at least I’m getting a little to pay margin interest. I sold 20 contract of the 3/2/18 $12.50 Calls for a 15¢ premium. That’s about 1% for a 10 day option. If I get called away with assignment at $12.50, no problem! I’ll take the loss and move on. I’ll put the money to work elsewhere. It’s a Covered Call on previously owned stock so it would normally get a Risk Factor 1, but since there’s a chance of getting assigned below my buy-in price it gets a Risk Factor 2.
Sell to Open 20 AMD 3/2/18 $12.50 C @ 15¢ (+$300)
Steve
The Options Coach