I have a 5 contract Covered Call on Micron (MU) to expire at the close today. That Strike Price is $53 and the stock’s at $52.55. The way the market’s moving I don’t think I’ll be getting assigned today. I decided to get a jump on next week by selling another Call on those shares. At the moment this Call is Naked but if the stock doesn’t get to $53 today I’ll have a Call expiring and these shares will cover this new Call for next week’s expiration. I just sold 5 contracts of the 8/7/18 $53 Call for a premium of 90¢ for $450. At the moment this trade gets a Risk Factor 5 because it’s a Naked Call until the close. After the close the Risk Factor will be a 1 because it will become a Covered Call.
Sell to Open 5 MU 9/7/18 $53.00 C @ 90¢ (+$450)
I’ll watching MU closely to make sure it doesn’t get to $53.
Steve
The options Coach