This morning I had a 10 contract $14.50 Covered Call with Occidental Petroleum (OXY). And I had a 10 contract $14 Naked Call.<\/p>\n
I sold the $14 Naked Call when the stock was at $14.38. I had a strong feeling OXY was gonna come down. This is the importance of following a few stocks and not many. You get to know how the stock moves. Nothing is written in stone, anything can happen, but when watching fewer you can take a more educated guess on where a stock is going. My prediction with OXY came true and the stock dropped below my Strike Price of $14. Since I sold the Call with the stock In-the-Money I got a much better premium.<\/p>\n
Tuesday, with the stock at $14.38 I sold 10 5\/29\/20 $14 Calls. I received a premium of 65\u00a2 for $650. A few minutes ago I bought 1000 shares of OXY to cover this Call. I paid $13.90. Getting the 65\u00a2, and now making an investment of $13.90 per shares, gives me a Rate of Return of 4.6%. This position expires tomorrow. Below is the Call I sold and the stock I bought.<\/p>\n
5\/26\/20 \u2013 ($14.38) Sell to Open 10 OXY 5\/29\/20 $14.00 C @ .65 (+$650)<\/strong><\/p>\n Today \u2013 Buy 1000 Shares OXY @ $13.90<\/strong><\/p>\n This position now has a Risk Factor 1<\/strong>.<\/p>\n If OXY stays above $14 and I get assigned I’ll make another $100 on the stock sale. If not, I’ll sell another Call for next week.<\/p>\n I was also just filled on a 2 contract Call with Nvidia (NVDA). I own 200 shares at $361. The stock came down in the last few days. Today with the stock at $347 I sold 2 $360 Calls. I received a premium of $1.20 for $240. I don’t think NVDA will hit $360 by tomorrow but if it does I’ll get assigned and lose $1 on the stock. I took a chance on the $360 Strike for a better premium.<\/p>\n Sell to Open 2 NVDA 5\/29\/20 $360 C @ $1.20 (+$240)<\/strong><\/p>\n Successful Trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" This morning I had a 10 contract $14.50 Covered Call with Occidental Petroleum (OXY). And I had a 10 contract $14 Naked Call. I sold the $14 Naked Call when the stock was at $14.38. I had a strong feeling OXY was gonna come down. This is the importance of following a few stocks and […]<\/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-7736","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-20M","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7736","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=7736"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7736\/revisions"}],"predecessor-version":[{"id":7741,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7736\/revisions\/7741"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}