{"id":14548,"date":"2024-11-04T11:09:34","date_gmt":"2024-11-04T16:09:34","guid":{"rendered":"https:\/\/www.mainstbeatswallst.com\/?page_id=14548"},"modified":"2024-11-08T09:59:57","modified_gmt":"2024-11-08T14:59:57","slug":"sold-a-2-contract-call-with-sq","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=14548","title":{"rendered":"Sold a 2 Contract Call with SQ"},"content":{"rendered":"

\"\"<\/a>Back on May 6th I bought 200 shares of Block (SQ), (formally called Square) at $71.20 per share. At the time I bought the shares specifically to sell a Call option. And I’ve been selling Calls ever since because I never got assigned. Today I sold my 12th Call option on the same 200 shares of SQ. With the stock at $72.77 I sold 2 11\/8\/24 $75 Calls for a premium of $3. This gave me a total premium of $600 for the 200 shares.<\/p>\n

Sell to Open 2 SQ 11\/8\/24 $75.00 C @ $3.00 C (+$600)<\/strong><\/h4>\n

As you see I gave this trade a Risk Factor 1<\/strong> because I previously owned the shares and I really don’t care if I get assigned or not. Normally this would not be a great time to sell an option; #1 we have the election tomorrow, and #2, SQ reports earnings this Thursday. These are two huge news items which can move the market and the stock a lot. But, like I said, I already own the stock and I don’t care if I get assigned.<\/p>\n

These two news items are the reason for the inflated premium. With my buy-in price for the stock at $71.20 getting a $3 premium is a nice 4.2% for the one week trade. If I get assigned at $75 my profit on the stock will be an additional $3.80 per share for $760 on the 200 shares.<\/p>\n

Below I listed all the trades I made selling Calls on these same 200 shares and the return percentage. All the trades were with a one week Expiration Date.<\/p>\n

5\/6\/24 \u2013 Sell to Open 2 SQ 5\/10\/24 $73.00 C @ $1.00 (+$200)<\/p>\n

Return 1.4%<\/p>\n

5\/15\/24 \u2013 Sell to Open 2 SQ 5\/17\/24 $73.00 C @ $1.50 (+$300)<\/p>\n

Return 2.1%<\/p>\n

5\/17\/24 \u2013 Sell to Open 2 SQ 5\/24\/24 $73.00 C @ $1.30 (+$260)<\/p>\n

Return 1.8%<\/p>\n

6\/28\/24 \u2013 Sell to Open 2 SQ 7\/26\/24 $71.00 C @ 80\u00a2 (+$160)<\/p>\n

Return 1.1%<\/p>\n

7\/5\/24 \u2013 Sell to Open 2 SQ 8\/2\/24 $73.00 C @ $1.50 (+$300)<\/p>\n

Return 2.1%<\/p>\n

8\/29\/24 \u2013 Sell to Open 2 SQ 9\/27\/24 $74.00 C @ $1.40 (+$280)<\/p>\n

Return 1.9%<\/p>\n

9\/5\/24 \u2013 Sell to Open 2 SQ 10\/4\/24 $73.00 C @ 75\u00a2 (+$150)<\/p>\n

Return 1%<\/p>\n

9\/12\/24 \u2013 Sell to Open 2 SQ 10\/11\/24 $72.00 C @ 65\u00a2 (+$130)<\/p>\n

Return 0.9%<\/p>\n

9\/26\/24 \u2013 Sell to Open 2 SQ 10\/25\/24 $73.00 C @ 70\u00a2 (+$140)<\/p>\n

Return 0.9%<\/p>\n

10\/11\/24 \u2013 Sell to Open 2 SQ 10\/25\/24 $74.00 C @ 75\u00a2 (+$150)<\/p>\n

Return 1%<\/p>\n

10\/28\/24 \u2013 Sell to Open 2 SQ 11\/1\/24 $74.00 C @ $1.40 (+$280)<\/p>\n

Return 1.9%<\/p>\n

To date, with the 12 Calls on the 200 shares of SQ I brought in a total of $2750 in premiums. This is 19.3% on my investment since May 6, 2024. I think this is a great example of how Covered Calls can bring in nice returns.<\/p>\n

I am starting an options trading class to be held on Staten Island. The class will be on Tuesday nights from 7 to 9pm. If interested, or have any questions, send me an email and I’ll get in touch with you. We will start in a few weeks.<\/p>\n

As I was about to send this message I was just filled on another trade. I bought 100 shares of NEP last Tuesday at $19.90 and sold a Call that expired on Friday. I was not assigned so I sold another Call.<\/p>\n

Sell to Open 1 NEP 11\/8\/24 $20.00 C @ 50\u00a2 (+$50)\u00a0<\/strong><\/p>\n

Bringing in 50\u00a2 does not sound like much but it’s a 2.5% return for a one week trade. If I did this every week it would be 130% for the year. I did the same trade last week. Only 50 more weeks to go lol.<\/p>\n

Both of these trades above are great Grasshopper Trades.<\/p>\n

 <\/p>\n

Successful trading,<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Back on May 6th I bought 200 shares of Block (SQ), (formally called Square) at $71.20 per share. At the time I bought the shares specifically to sell a Call option. And I’ve been selling Calls ever since because I never got assigned. Today I sold my 12th Call option on the same 200 shares […]<\/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-14548","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3ME","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14548","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=14548"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14548\/revisions"}],"predecessor-version":[{"id":14549,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/14548\/revisions\/14549"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}