Earlier today I bought 1000 shares of Micron (MU) at $52.50. You can read that post at “Buy 1000 Shares of Micron.” I felt the stock was gonna move up, and it did. I was waiting for the stock to get higher before I sold a Call. It just kept moving up so I watched closely until I felt it was time to get a great deal. The stock got up to $54.35 and I pulled the trigger. I sold 10 contracts of the MU 7/27/18 $54.50 Call for a premium of $1. If I get assigned this will be a great trade. I’ll make $2000 on the stock, plus another $1000 premium. If I don’t get assigned the premium alone is a “Rate of Return” of 1.9%. This is well above my desired 1% gain for a 1 week deal. This trade fits into my “1 Week/1%” strategy. This trade is a Covered Call on a very good stock so it gets a Risk Factor 1.
Sell to Open 10 MU 7/27/18 $54.50 C @ $1.00 (+$1000)
Steve
The Options Coach