I had a Covered Call with Jabil (JBL) and I just sold the shares leaving me Naked.
Yesterday I wrote a post letting you know I wanted to get out of Jabil (JBL). Instead of just selling the stock when it was at $41.50 I decided to sell a 2 day Call and get paid a premium to sell. The Call is expiring today. With the stock at $41.50 I sold a 10 contract $41.50 Call for a 20¢ premium for $200. I figured if I’m gonna sell I might as well get a premium while I was doing it.
I’m at my daughter’s house in New Hope, PA. for a post Christmas lunch. Before I left my office I placed an order to sell the 1000 shares of JBL because it looked like the stock was going down. It was a gamble because I could have had my order filled and the stock go up, and I would have a Naked Call. I just looked at my account and noticed I was filled on my sell order. I bought the stock at $39.08 and I placed the sell order at $41.58.
11/27/19 – Buy 1000 Shares JBL @ $39.08
12/27/19 – Sell 1000 Shares JBL @ $41.58
Profit +$2500
Below is the JBL trade notification.
It looks like my prediction of the stock going down was correct because as I write the stock is at $41.27. I hope it stays below my Strike Price of $41.50 until the close. If it does I make an extra 8¢ on the stock sale, and I keep the $200 premium. And this deal will be over with a nice gain.
If I sold the stock yesterday I would have sold for $41.50. The way I did it I received an extra 8¢ on the sale of the 1000 shares, and I got a $200 premium.
So far it looks good!
I hope everyone had a great Christmas.
Successful trading,
Steve
The Options Coach