I sold a 10 Contract Call with Micron (MU) but only 5 are covered.
Back on 9/6/19 I bought 500 shares of MU at $49.30. The stock pulled back a bit and I was just holding on to the stock waiting for it to get to the point where I could sell Calls. Today the market is up and MU is also up. As I write MU is up 62¢ to $48.65. With the stock at $48.65 I sold 10 contracts of the MU 11/1/19 $49.50 Calls for a premium of 50¢. This trade will get a Risk Factor 2because there’s a little risk here. The added risk is because I sold a 10 contract Call but I only own 500 shares of the stock. Making this trade leaves me with a 5 contract Covered Call and a 5 contract Naked Call. The Naked Call is the reason the trade is not a Risk Factor 1.
Sell to Open 10 MU 11/1/19 $49.50 C @ 50¢ (+$500)
I might be done trading for the week (i’ve said that before lol). Remember, I made some trades last week that will expire this Friday. I have Calls sold on DISH and SQ. Today I also bought 1000 shares of Marvell. I have to decide what I want to do, sell a Call or hold the shares for growth. Marvell is one of my hot stocks but I’m not sure if it’s ready to make a big move yet. I will be writing a lot about Marvell when I get the new section done, Wealth Builder.
Successful Trading,
Steve
The Options Coach