{"id":7875,"date":"2020-06-18T10:11:03","date_gmt":"2020-06-18T14:11:03","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?page_id=7875"},"modified":"2020-06-18T10:11:03","modified_gmt":"2020-06-18T14:11:03","slug":"skyworks-solutions-covered-call","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=7875","title":{"rendered":"Skyworks Solutions Covered Call"},"content":{"rendered":"<p><a href=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1635\" data-permalink=\"https:\/\/www.mainstbeatswallst.com\/?attachment_id=1635\" data-orig-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?fit=75%2C90&amp;ssl=1\" data-orig-size=\"75,90\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Risk1\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?fit=75%2C90&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?fit=75%2C90&amp;ssl=1\" class=\"size-full wp-image-1635 alignleft\" src=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?resize=75%2C90\" alt=\"\" width=\"75\" height=\"90\" \/><\/a>I was aiming at Skyworks Solutions (SWKS) for a Covered Call yesterday. The stock was in the $129.70 area. I wanted to sell the 3 day $130 Call.<\/p>\n<p>Yesterday while looking at the possible trade it looked like the stock was gonna pull back so I sold 3 SWKS 6\/19\/20 $130 Calls for a premium of $2.10 for \u00a0$630 on the 3 contracts. You should buy the stock first then sell the Call, but since I felt the stock was gonna move down I sold the Call first. This turned out to be a mistake because as soon as I was filled the stock started moving up. The stock moved above my Strike Price and never looked back. It went all the way up to $132. Since it looked like I&#8217;d have to deliver the stock my &#8220;adjustment trade&#8221; strategies started going through my head. However, I did have 2 more days to have SWKS move below my Strike.<\/p>\n<p>This morning the stock opened above $130 but a few minutes into the day the stock dropped below $130. I ended up getting the 300 shares for $130. As I write the stock is now at $130.50. I now have a 3 contract At-the-Money Covered Call. I feel a lot better because SWKS is a very good stock.<\/p>\n<p style=\"text-align: center;\"><strong>Buy 300 Shares SWKS @ $130.00<\/strong><\/p>\n<p style=\"text-align: center;\"><strong>Sell to Open 3 SWKS 6\/19\/20 $130.00 C @ $2.10 (+$630)<\/strong><\/p>\n<p>This is a Covered Call on a very good stock so it gets a <strong>Risk Factor 1<\/strong>.<\/p>\n<p>This position gives my a Return on Investment (ROI) of 1.6% for a 2 day investment. This trade fits into my &#8220;<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.mainstbeatswallst.com\/?page_id=422\">1 Week\/1%<\/a><\/span>&#8221; strategy.<\/p>\n<p>Successful Trading,<\/p>\n<p>Steve<\/p>\n<p><em>The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I was aiming at Skyworks Solutions (SWKS) for a Covered Call yesterday. The stock was in the $129.70 area. I wanted to sell the 3 day $130 Call. Yesterday while looking at the possible trade it looked like the stock was gonna pull back so I sold 3 SWKS 6\/19\/20 $130 Calls for a premium [&hellip;]<\/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-7875","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-231","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7875","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=7875"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7875\/revisions"}],"predecessor-version":[{"id":7876,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7875\/revisions\/7876"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}