I sold a 10 contract Covered Call on my Square (SQ) Shares.
I bought 1000 shares of SQ on 10/1/19 for $62.75 per share. I’ve been selling Call and bringing in nice premiums. At this point, with their great earnings report, I think SQ is gonna move up. I love making money when my stocks go up but being an options trader in my main way to make money. I love short term option where Time Decay in on my side. In this case, with SQ, I feel the stock is going up. With the stock up about $1 I just sold a 10 contract Call and it might have been a mistake. Not that I won’t make money, but if I waited a little longer I might have made more. With the stock at $63.10 I sold a $64.50 Call. As I write the stock shot up and it’s at $64 now! When the stock was at $63.10 I went out to $64.50 thinking I’ll take a smaller premium and make a little more on the stock if assigned. I don’t think it will hit my Strike Price today, but by Friday almost looks definite.
Sell to Open 10 SQ 11/15/19 $64.50 C @ 50¢ (+$500)
This trade gave me a smaller premium but if assigned I make a nice amount on the stock because I went out to $64.50. This trade is a Covered Call on previously owned stock so it gets a Risk Factor 1.
I also own 1000 shares of Dish Network (DISH). I have an order in to sell 10 Covered Calls with a Strike Price of $36.50. The stock is at $35.80 and I’m going for a 40¢ premium. I’ll let you know if I get filled.
I was just about to sent this post and I decided to sell my 10 Long Call on Microsoft (MSFT). I bought 10 Calls on 10/28/19 with an Expiration Date of 1/17/19. I’m up $400 and I’m worried Time Decay might start working against me so I took the profit. I will be buying another Long Call very soon. Probably out to at least June. I might even buy a LEAPS. I love MSFT!
10/28/19 – Buy to Open 10 MSFT 1/17/20 $145.00 C @ $4.50 ($4500)
11/11/19 – Sell to Close 10 MSFT 1/17/19 $145.00 C @ $4.90 ($4900)
Profit +$400
This trade gave me an 8.8% return in about 2 weeks. I’ll take it! Always remember, when buying options, you must take profit. Things chance real fast. If the stock goes down a little Time Decay will eat your profit rapidly.
Successful trading,
Steve
The Options Coach