{"id":7587,"date":"2020-05-05T10:32:18","date_gmt":"2020-05-05T14:32:18","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?page_id=7587"},"modified":"2020-05-05T10:32:18","modified_gmt":"2020-05-05T14:32:18","slug":"covered-calls-with-twtr-ual","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=7587","title":{"rendered":"Covered Calls With TWTR & UAL"},"content":{"rendered":"

I own 1000 shares of Twitter (TWTR) and 2000 shares of United Airlines (UAL). My shares of TWTR I own at $28, and the UAL shares I own 1000 at $24.75 and 1000 at $28. Yesterday I got into a Covered Call with the UAL $24.75 shares.<\/p>\n

A few minutes ago I sold Covered Calls with TWTR and my $28 shares of UAL. With TWTR I sold 10 contracts of the 5\/8\/20 At-the-Money<\/a> <\/span>$28 Calls. I received a $1 premium. If I get assigned I’ll keep the $1000 but I will not make any money on the stock. I sold the $28 Call because the premium was much higher than the $28.50 or the $29 Calls. With the market being so volatile I want the bigger premium. With the stock moving up and down with the volatile there’s a chance I won’t get assigned, so I might as well take the higher premium. This premium is a return of 3.5%. I’ll take this and run!<\/p>\n

Sell to Open 10 TWTR 5\/8\/20 $28.00 C @ $1.00 (+$1000)<\/strong><\/p>\n

This is a Covered Call on a solid stock so the trade gets a Risk Factor 1<\/strong>.<\/p>\n

\n

With UAL I bought the stock at $28 on 5\/1. The stock is down a couple of bucks so I couldn’t get a great premium for the $28 Call. I decided to go out another week with the Expiration Date. This Call will expire next Friday the 15th. I sold 10 contracts of the UAL 5\/15\/20 $28 Calls. Since I bought the stock at $28 this is an At-the-Money Call. If I sold the $28 Call for this Friday I would have received a premium of 33\u00a2, but going out to next Friday I received a premium of $1. I have to hold an extra week but I like the $1 premium for $1000.<\/p>\n

Sell to Open 10 UAL 5\/15\/20 $28.00 C @ $1.00 (+$1000)<\/strong><\/p>\n

This trade is also a Risk Factor 1<\/strong>.<\/p>\n

Successful Trading,<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

I own 1000 shares of Twitter (TWTR) and 2000 shares of United Airlines (UAL). My shares of TWTR I own at $28, and the UAL shares I own 1000 at $24.75 and 1000 at $28. Yesterday I got into a Covered Call with the UAL $24.75 shares. A few minutes ago I sold Covered Calls […]<\/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-7587","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-1Yn","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7587","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=7587"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7587\/revisions"}],"predecessor-version":[{"id":7588,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7587\/revisions\/7588"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}