When I write about having money on the sidelines it’s so I don’t run into problems with my margin account during a sell-off. Also, when there is a sell-off to have funds available for good buys. Well, we are in a sell-off so I went shopping.<\/p>\n
Applied Materials (AMAT) is a great company.\u00a0AMAT stock is up 36% year-to-date. And it\u2019s easy to see why. The company recently reported $5.16 billion in revenue which was a year-over-year increase of 24%. And Applied Materials also posted a 27% increase in Earnings Per Share (EPS) for the same quarter.<\/p>\n
I can do a full report on this company, and on their position in the need for semiconductors, but I want to get this trade out. This is the type of stock that can end up in my Wealth Builder. For now I decided to just do a Covered Call and bring in some money in this bad week. I bought 1000 shares at $115.85 and sold 10 contracts of the 3\/5\/21 $116 Calls for a premium of $1.75 (+$1750). This is great for an option expiring this Friday. The premium is a 1.5% return and if I get assigned I’ll make another $150 on the stock sale.<\/p>\n
Buy 1000 Shares AMAT @ $115.85<\/strong><\/p>\n Sell to Open 10 AMAT 3\/5\/321 $116.00 C @ $1.75 (+$1750)\u00a0<\/strong><\/p>\n I picked a Strike Price to get assigned and take in a nice premium. I think I’ll get assigned and out of this position. This trade gets a Risk Factor 1. Do some homework on this stock. You will like what you read.<\/p>\n <\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" When I write about having money on the sidelines it’s so I don’t run into problems with my margin account during a sell-off. Also, when there is a sell-off to have funds available for good buys. Well, we are in a sell-off so I went shopping. Applied Materials (AMAT) is a great company.\u00a0AMAT stock is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-10845","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2OV","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10845"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10845\/revisions"}],"predecessor-version":[{"id":10846,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10845\/revisions\/10846"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}