I’ve been in Canopy (CGC) since 1/14, 1 month now. In that 1 month I bought 500 shares, sold Calls and got assigned, bought another 500 shares, sold Calls twice without getting assigned, and today I just sold another 5 contract Call.
In this 1 month I brought in $250 with assignment and a total of $1150 in premiums. I just sold another Call and brought in another $300 as a premium. This makes my total premiums $1450.
In this 1 month CGC took a big dip and I was worried. I really never liked the pot stocks but CGC had good premiums so I figured it was worth a shot with 500 shares. I was worried because the pot stocks were in a nose dive, plus the uncertainty of where the coronavirus was gonna take the market. Well, today CGC game out with great earnings and the stock is up 20%.
I bought these 500 shares at $25. Today with the stock at $23.50 I sold 5 CGC 2/21/20 $25 Calls for a premium of 60¢. If you got in today at $23.50 and sold this Call at 60¢ you would have a 2.5% return. Me, I’m in the stock at $25, so it’s a 2.4% return for 1 week.
Sell to Open 5 CGC 2/21/20 $25.00 C @ 60¢ (+$300)
This is a Covered Call on previously owned stock so I give this trade a Risk Factor 1. I’m hoping the stock continues up on the great earnings and I get assigned. I think I did well with this stock but I’m looking to move on from CGC. If I do get assigned I will not make money on the stock sale because I sold the Call At-the-Money. Not At-the-Money of where the stock is today but at where I bought the stock.
Successful trading,
Steve
The Options Coach