On 2/10/20 I bought 400 shares of Gilead Sciences (GILD) at $68.90. At that time I also sold a 4 contract Call for a premium of $1.25 for $500.
I did not get assigned on this Covered Call so I still own the 400 shares.
Today the stock is moving up on the coronavirus fear. With the stock up I was able to get another nice premium. I sold 4 Calls for a premium of $1.00 for $400
Sell to Open 4 GILD 2/28/20 $69.00 C @ $1.00 (+$400)
Last week I received a premium of $1.25. For a stock I paid $68.90, this premium gave me a 1.8% return. Today my $1.00 premium gave me a 1.4% return. Both of these options are 1 week Calls. Both fit into my “1 Week/1%” strategy.
As I write GILD is moving higher. Since GILD is one of the biggest anti-virus pharmaceutical companies I think the stock will do well for a while.
This trade gets a Risk Factor 1.
Successful Trading,
Steve
The Options Coach