Last week I did a 5 contract Covered Call with Nutanix (NTNX). I bought 500 shares at $23.70 and sold a $24 Call. The stock shot up to almost $25. I felt I was gonna be assigned at $24 so I bought another 1000 shares at $24.65. At this point I owned 1500 shares ready to lose 500 of them to assignment. Well, the stock backed off on Friday and I was not assigned.<\/p>\n
This morning I started the week with the 1500 shares. The stock is up today. I don’t want to hold 1500 shares so I sold my original 500 shares at $24.15. The result is I started the week with a $225 gain.<\/p>\n
5\/29\/20 \u2013 Buy 500 Shares of NTNX @ $23.70\u00a0<\/strong><\/p>\n 6\/8\/20 \u2013 Sell 500 Shares NTNX @ $24.15 <\/strong><\/p>\n After this sale I now hold 1000 shares at $24.65. With the stock up at $24.50 I just sold a 10 contract $25 Call to expire this Friday. I received a premium of 55\u00a2 for $550.<\/p>\n Sell to Open 10 NTNX 6\/12\/20 $25.00 C @ 55\u00a2 (+$550)<\/strong><\/p>\n This trade gives me a Return on Investment (ROI) of 2.2% for the premium only. If I get assigned I’ll make another 35\u00a2 ($350) on the stock sale. Then the ROI will be 3.6%. This trade gets a Risk Factor 1<\/strong>.<\/p>\n I also made a trade with Occidental Petroleum (OXY). The oil stocks have been on a crazy run the past week. OXY moved from under $13 to a high today of almost $24. I don’t see this stock continuing at the same pace. Today I sold a 10 contract Naked Call. Naked Call are very dangerous with hot stocks so I’ll have to watch this very closely.<\/p>\nProfit +$225<\/strong><\/span><\/h4>\n
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