We have some good news coming today concerning a trade deal with Mexico. At least it sound like good news is coming! This is probably why the market is moving today. While the market is moving, my fingers are also moving. Here’s what’s going on so far today on my computer:
I bought 1000 shares of Advanced Micro Devices (AMD) at $24.90. It was moving so I watched it for a little while, deciding if I want to sell a $25 Call and get a real nice premium, or sell the $26 Call. With the $26 I’d get a smaller premium but, if assigned, I’d make more on the stock. As I’m watching it looked like the stock would continue to move, so with the stock at $25.25 I went with the $26 Call for a 60¢ premium, for $600. The $25 Calls were close to $1 but I would only make 10¢ on the stock if assigned. With my $26 Call I got the $600 locked up, and now I’m hoping the stock continues to move this week and I get assigned at $26, I’ll make $1.10 on the stock for another $1100. This Call expires this Friday. This trade gets a Risk Factor 1. AMD is a hot stock! The premium ONLY on this trade is 2.4%.
Advanced Micro Devices
Buy 1000 Shares AMD @ $24.90
Sell to Open 10 AMD 8/31/18 $26.00 C @ 60¢ (+$600)
Back on 8/3/18 I bought 500 shares of Micron at $52.50. I sold a Call at that time but was not assigned. The stock came down a little and I haven’t sold a Call since. The stock has been moving the last few sessions and today with the stock at $52.27 I was filled on an order I placed. I sold 5 contracts of the MU $53 Call for a premium of 60¢. This gives me $600. This Call will expire this Friday. I sold a Call on previously owned stock so this trade gets a Risk Factor 1. The Rate of Return for the premium ONLY is 1.1%.
Sell to Open 5 MU 8/31/18 $53.00 C @ 60¢ (+$300)
Also this morning I bought 200 shares of RH at $155.25. I tried to get a Call sold with a $3 premium but it started to pull back. Once I get filled I’ll let you know.
Buy 200 Shares RH @ $155.25
I don’t know if you’re watching Facebook and Netflix but they’re coming back. Today FB is up $3 to $177 and NFLX is up $14 to $373. They both had a big pullback and I’ve been idle on them. I’m looking for FB to get back to $200 and NFLX to $400. If that happens my account will be looking very nice!
Steve
The Options Coach