{"id":2166,"date":"2016-10-03T14:37:25","date_gmt":"2016-10-03T18:37:25","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=2166"},"modified":"2016-10-07T23:18:44","modified_gmt":"2016-10-08T03:18:44","slug":"micron-technology-covered-call","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=2166","title":{"rendered":"Micron Technology Covered Call"},"content":{"rendered":"

\"Risk2\"<\/a><\/p>\n

The Tech sector has been on a huge run since May. Micron (MU) is one of those stocks. And the company also received an upgrade today by Barclays. They put a rating of “overweight” and raised there price target from $19 to $23. MU has been on my watch list for years but I haven’t made any trades with this stock since I started Main Street beats Wall Street<\/strong>. Today I did a Covered Call with a little reservation. The reason for that is MU announces their 3rd quarter earnings tomorrow after the close. I normally try to stay away from trades involving stocks with news imminent, but I really like this company right now. It received a nice upgrade today plus the stock has a good rating. My broker, Charles Schwab, who is very stingy with ratings gives Micron a B rating. The last time MU reported earnings it beat the street and had a nice pop.<\/p>\n

Today with the stock at $17.78 I bought 5000 shares and put in an order to sell the $18.50 Calls. At first I put my order in to sell the $18 Calls but after reading a few reports I decided to raise the Strike Price $.50. I’ll take a little less in premium in hopes the stock goes up and capture more on a stock gain. This Call expires this Friday so I hope the stock goes above $18.50 and I get assigned. I sold 50 contracts of the MU 10\/7\/16 $18.50 Calls and received a premium of $.35 for $1750. Most times I would give Covered Calls a Risk Factor of 1 but since earnings are coming out before Expiration I’ll give this Covered Call a Risk Factor<\/strong> a 2. Here’s the buy order for the stock and the sell order for the Call.<\/p>\n

Buy 5000 shares MU @ $17.78<\/strong><\/h4>\n

Sell to Open 50 MU 10\/7\/16 $18.50 C @ $.35 (+$1750)<\/strong><\/h4>\n

 <\/p>\n

As I’m writing I also have another order in to sell more Call on MU for a little Hedge (insurance). I’ll let you know if and when I get executed.<\/p>\n

 <\/p>\n

Steve<\/p>\n

The Options Coach\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The Tech sector has been on a huge run since May. Micron (MU) is one of those stocks. And the company also received an upgrade today by Barclays. They put a rating of “overweight” and raised there price target from $19 to $23. MU has been on my watch list for years but I haven’t […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-2166","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-yW","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"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=2166"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2166\/revisions"}],"predecessor-version":[{"id":2237,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2166\/revisions\/2237"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}