I started the week with 2 trades I feel will work out well.<\/p>\n
On 9\/1 I bought 1000 shares of Nvidia (NVDA) at $553.85 and have been selling Covered Calls and bringing in great premiums since.<\/p>\n
Last week the stock pulled back a little but today popped just enough for me to get a nice Call sold. I sold 10 NVDA $555 Calls to expire this Friday. I got another big premium of $6.50 for $6500.<\/p>\n
Sell to Open 10 NVDA 10\/30\/20 $555.00 C @ $6.50 (+$6500)<\/strong><\/p>\n I have been selling the $560 or the $565 Calls, but with the pull back, and the desire to get assigned before the election, this time I sold the $555 Call.<\/p>\n This trade is a Covered Call on previously owned stock so it gets a Risk Factor 1<\/strong>.<\/p>\n Let’s take a look at Snap (SNAP). The stock has been on a big run after earnings. It’s still losing money but the loss is less. They also had an increase in users.<\/p>\n I’m not a big fan of SNAP! However, over the weekend I was looking at the charts to see if money could be made. Looking at the amount the stock went up last week I wanted to look at the Relative Strength Index (RSI). I noticed it was up near 93. This is extremely high, and the highest ever for snap.<\/p>\n I planned on looking at SNAP first thing this morning. On a down day, SNAP opened up about 50\u00a2. I did not think it would continue up. With the RSI at 93 the stock is extremely overbought. With the stock close to $44 I was thinking of Shorting the stock but decided on selling a Naked Call. I sold 10 contracts of the SNAP $46 Calls to expire Friday. I received a premium of 80\u00a2 for $800.<\/p>\n Sell to Open 10 SNAP 10\/30\/20 $46.00 C @ 80\u00a2 (+$800)<\/strong><\/p>\n SNAP is a hot stock right now and a Naked Call would normally get a Risk Factor 5 but with this RSI level I’ll put a Risk Factor 3. But I’ll watch closely. As I write the stock is down $1 and is getting close to $42.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I started the week with 2 trades I feel will work out well. On 9\/1 I bought 1000 shares of Nvidia (NVDA) at $553.85 and have been selling Covered Calls and bringing in great premiums since. Last week the stock pulled back a little but today popped just enough for me to get a nice […]<\/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-9139","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2np","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/9139","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=9139"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/9139\/revisions"}],"predecessor-version":[{"id":9140,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/9139\/revisions\/9140"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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