I bought a 10 contract LEAPS a few minutes ago.
Jabil (JBL) is an “A” rated company and just came out with great earnings this morning. If you look at the last few earnings on the candlestick chart the stock has been going up after a good report. I’m hoping it does the same this earnings period.
I’m looking into JBL to see if it’s worthy of getting into one of my Wealth Builder portfolios.
Today I bought 10 contracts of the LEAPS. I bought the 1/21/22 $45 Calls. This option has a Delta of .55 so it will move 55¢ for every dollar the stock moves. When I bought the option the stock was at $43.10. I’ll control 1000 shares for the premium of $6.80.
Buy to Open 10 JBL 1/21/22 $45.00 C @ $6.80 ($6800)
I think this can be a great trade for investors who don’t have the time to be at the computer all day but want to invest in options.
This is a very good stock with an “A” rating. It’s a long term option, so I give this trade a Risk Factor 1.
I also own 1000 shares of the stock at $39.08, and I sold 10 contracts of the $42 Calls, which will expire this Friday. I did this Covered Call as an earnings play. With a good report today it looks like I’ll get assigned on Friday.
Successful trading,
Steve
The Options Coach