My trades are few and far in between these days. This market is just so volatile, I’m a little nervous. Also, the few stocks that I do own are below where I bought so I’m a little handcuffed. I’m just watching and waiting for my stocks to bounce back. It’s giving me a little time to get other things done in my life.
Today the market is up big and so is Micron (MU). With the stock up about $1.80 and at $49.70 I just sold a 10 contract $51 Call. I’ve been watching MU for a long time and in recent weeks whenever the stock has a big day it pulls back again. I decided not to buy the shares and sell a Naked Call. However, I did place a buy order for the 1000 shares if the stock continues up and gets up to my Strike Price of $51. For now I’m naked! This Call will expire this Friday. Let’s watch to see if the stock gets up to $51. This is a Naked Call so it’s a very dangerous trade but I did place a buy order at my Strike price. It’s still dangerous because the stock can jump over night and if that happens I will not get filled on my order. I’ll only get filled if the stock hits $51 during trading hours. This trade get’s a Risk Factor 4.
Sell to Open 10 MU 4/13/18 $51.00 C (+$500)
It feels good making trades and bringing in money. I hope the volatile calms down a bit. Until than, be careful!
I didn’t write a” week ending” report because I didn’t make a trade last week.
Steve
The Options Coach