While I was writing my last post I had 2 trades entered that I was waiting to get filled on. After finishing the post I went back to my account and saw I was filled on both of the trades. I had an order to buy 1000 shares of Advanced Micro (AMD) at $32 which I was filled on. I also entered an order to sell 10 contracts of the AMD 9/21/18 $33.50 Calls. I was trying to get $1. When I entered the trade the premium was at 86¢. While I was writing my last post the stock fluctuated and I was filled at the $1 for a $1000 premium. This is a Covered Call on a great stock so I give the trade a Risk Factor 1.
Advanced Micro Devices Covered Calls
Buy 1000 Shares AMD @ $32.00
Sell to Open 10 AMD 9/21/18 $33.50 Calls @ $1.00 +$1000
I’m hoping the stock closes above my Strike Price of $33.50 this coming Friday. If it does this will be a very nice trade. I’ll keep the $1000 premium plus make $1500 on the stock assignment. Not bad!
Steve
The Options Coach