On 1/13/20 I bought 1000 shares of Micron (MU). Last week I sold a 10 contract Call for a $550 premium and wasn’t assigned. I wanted to sell a Call yesterday but all stocks were down and I couldn’t get a good premium. Today we’re having a bit of a bounce back. With MU up about $1 and the stock at $56.40 I was just filled on a 10 contract Call. I sold the MU 1/31/20 $58 Call for a 40¢ premium. There’s only 3 and a half days left to the week so I settled for a little less of a premium, but $400 isn’t bad.
Sell to Open 10 MU 1/31/20 $58.00 C @ 40¢ (+$400)
It’s not the 1% I look for with a 1 week trade but for just another 3 days to the week, I’ll take it. Especially with the uncertainty with the health issue.
Watch for another trade. I’ll be looking to sell a Call on my 200 Apple shares. Probably right before the close. They report earning today after the close and the premiums are high. Again, with the health issue I wouldn’t mind getting assigned. If the earnings aren’t great and the stock goes down, at least I grab a nice premium.
Successful trading,
Steve
The Options Coach