On Monday I bought 100 Shares of Lululemon (LULU) at $356 per share. Along with owning the shares I sold a 1 contract Call Option. I sold 1 LULU 11\/18\/22 $362.50 Call for a premium of $6 for a total of $600.<\/p>\n
On Wednesday the stock dropped and the premium went down to $1.40. With 3 days remaining to the week, and dealing with a volatile stock, I decided to do a Buy to Close<\/strong> and close the position. I sold the option bringing in $600 and spent $1.40 ($140) to close the position for a profit of $460. My thought was since LULU was a volatile stock it would fluctuate back up so I would be able to sell another Call bringing in another premium. On Thursday the stock moved up a little and I had an order in to sell the next Call for a premium of $4.40 for the same option I originally sold. It got very close but I never got filled on the trade. The stock dropped back down, and with Time Decay working against the premium, I was never filled and the week ended.<\/p>\n I ended up making $460 on the week. If I never did the Buy to Close<\/strong> I would have made $600. And of course I didn’t make money on the stock sale because I was not assigned. The result is I keep the premium and I keep my stock. I will try to sell another 1 contract Call on Monday.<\/p>\n 11\/14\/22 \u2013 Sell to Open 1 LULU 11\/18\/22 $362.50 C @ $6.00 (+$600)<\/strong><\/p>\n 11\/16\/22 \u2013 Buy to Close 1 LULU 11\/16\/22 $362.50 C @ $1.40 (-$140) <\/strong><\/p>\n When I entered this trade I was hoping to make $600 on the premium and get assigned for another $650 on the stock sale. Sometimes things don’t work out the way you planned. However, \u00a0I did make $460 on the trade which is a Return on Investment of 1.29%. Any time I make over 1% on a 1 week investment I’m happy.<\/p>\n If you have any questions on this trade send me an email.<\/p>\n <\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" On Monday I bought 100 Shares of Lululemon (LULU) at $356 per share. Along with owning the shares I sold a 1 contract Call Option. I sold 1 LULU 11\/18\/22 $362.50 Call for a premium of $6 for a total of $600. On Wednesday the stock dropped and the premium went down to $1.40. With […]<\/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-13496","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3vG","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13496","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=13496"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13496\/revisions"}],"predecessor-version":[{"id":13498,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13496\/revisions\/13498"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Profit +$460<\/strong><\/span><\/h4>\n
\nTotal Weekly Gain +$460<\/strong><\/h2>\n
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