Yesterday I was very busy preparing for my Oktoberfest which is this Saturday. Yesterday was also Monday, so I was looking to get into a position where I could make some money this week. I have a lot of German beer to buy lol. Not being able to be near my computer for most of the day was gonna make it a little more difficult. In the morning I looked to see if I could place an order for a position with some potential. I decided to place an order to sell 10 Advanced Micro Devices (AMD) with the Strike Price of $33.50. When I placed the order the stock was at about $32. I placed the order with the premium price of 60¢, if filled I would bring in $600. The stock fluctuated and I was filled on my Call order. I really don’t want to own the stock so I was hoping the stock would stay well below my Strike Price. Having said that, I did protect myself by placing a “Stop/Limit” order which is a buy order if the stock hit a certain price. I placed my “Stop/Limit”order at $33.30. Today, while the stock was heading to it’s day high, my buy order was filled so I now have a Covered Call. With my thoughts of this stock in a “over bought” situation I’m not very happy with owning the stock. With me not being near my computer I had to place the “Stop/Limit” order to protect myself because this stock could hit $35 at any time.
Yesterday – Sell to Open 10 AMD 9/28/18 $33.50 C @ 60¢ (+$600)
Today – Buy 1000 Shares AMD @ $33.30
Now that I own 1000 shares of AMD I’m a little concerned with a pull back. Let’s watch and see!
Steve
The Options Coach