Square (SQ) is moving nicely today. As I write it’s up $1.25. It’s still down about $1.50 from where I bought but I was able to get a Call sold.
Last week I bought 1000 shares of SQ at $59.50. When I bought I did a Buy-Write. On Friday the Call expired but I wasn’t assigned. The stock fell to about $2.50 below my buy-in price. I was a little worried I wasn’t going to be able to get a Call sold this week. Today the stock is volatile but up. When the stock was at $58.20 I put in an order to sell a 10 contract Call to expire this Friday. I entered the order with the Strike Price of $59.50 and a premium of 60¢. While the stock was fluctuating I was filled. Since I was filled a few minutes ago the stock moved back down to $57.20. I’m happy getting filled for a $600 premium when I thought I was gonna be idle this week with SQ. This is a Covered Call on previously owned stock so it gets a Risk Factor 1.
Sell to Open 10 SQ 9/29/19 $59.50 C @ 60¢ (+$600)
I bought the stock at $59.50. Last week’s Call was with a Strike Price of $60. This week with only 4 days remaining until expiration and the stock lower, I had to move to the Strike Price of $59.50 in order to get a decent premium. If I get assigned I will not make anything on the stock sale. Which is OK! Last week I brought in a $900 premium and now another $600. If I get assigned It will be a nice trade.
Last week I made 3 Buy-Write trades, AMD, SQ and DISH. I was not assigned on any of these Covered Calls. Yesterday I sold a Call on AMD and today a Call with SQ. If I get a Call sold on DISH it can turn out to be a nice week.
Steve
The Options Coach