I own 2000 shares of Weight Watchers (WW). The second 1000 shares I bought on 2/10/20 for $36.75. I just sold (10) 2/21/20 $37 Calls against these shares. I received a premium of 75¢ for $750.
Sell to Open 10 WW 2/21/20 $37.00 C @ 75¢ (+$750)
The 75¢ is a nice premium for a 4 day trade. The return is 2%. I think WW is gonna move up but I would like to get assigned on these shares. WW has earnings coming out next Friday and I don’t want to own 2000 shares. If I get assigned on this trade I’ll sell another Call for a big premium on my remaining 1000 shares.
This is a Covered Call on previously owned stock so I give this trade a Risk Factor 1.
As I write WW is already above my Strike Price and I hope it stays above until Friday, Expiration Day.
Successful Trading,
Steve
The Options Coach