{"id":2185,"date":"2016-10-04T14:43:54","date_gmt":"2016-10-04T18:43:54","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=2185"},"modified":"2016-10-04T14:43:54","modified_gmt":"2016-10-04T18:43:54","slug":"micron-technology-triple-play-hedge","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=2185","title":{"rendered":"Micron Technology “Triple Play Hedge”"},"content":{"rendered":"

\"Risk5\"<\/a><\/p>\n

If you have been following my resent trades with Micron (MU) you know what I’ve been doing. But I just added to that position so let me explain where I am now. Yesterday I did a Covered Call with MU. Because the company is reporting their earnings after the close today, I decided to sell another Call to bring in some insurance with the premium. This was done yesterday and at the end of the day I had a 50 contract Covered Call and a 50 contract Naked Call. Today, just a little while ago I decided I wanted a little more insurance because you never know what happens after the earnings report. To get that insurance I sold another Naked Call, so now I have a “Triple Play Hedge<\/a><\/span>.” Please read about my strategy by hitting the link. It’s been working great for me and I hope it continues to not let me down today. This last Call was a 50 contract $19.50 Naked Call expiring next Friday the 14th. This is a Naked Call with the earnings report imminent so this trade gets a Risk Factor<\/strong> of 5. Before I show you the entire Triple Play Hedge here’s the Call I just sold:<\/p>\n

Sell to Open 50 MU 10\/14\/16 $19.50 C @ $.22 (+$1100)<\/strong><\/h4>\n

 <\/p>\n

Below I’ll show the entire Triple Play Hedge. Please understand the entire play and each trade. To me this is an important strategy. It helps me accomplish what I want, which is hedging and getting paid for it. If you have any questions please email me.<\/p>\n

Triple Play Hedge<\/strong><\/span><\/p>\n

10\/3\/16 \u2013 Buy 5000 shares MU @ $17.78<\/strong><\/p>\n

10\/3\/16 ($17.78) \u2013 Sell to Open 50 MU 10\/7\/16 $18.50 C @ $.35 (+$1750) (Covered)<\/strong><\/p>\n

10\/3\/16 ($17.82) \u2013 Sell to Open 50 MU 10\/14\/16 $19 C @ $.30 (+$1500) (Naked)<\/strong><\/p>\n

10\/4\/16 ($17.75) \u2013 Sell to Open 50 MU 10\/14\/16 $19.50 C @ $.22 (+$1100) (Naked)<\/strong><\/p>\n

Please remember, the dollar amount after the date of the trade, in parentheses, is the price of the stock when I sold the Call.<\/p>\n

Notice I have my Covered Call expiring this Friday and the other two Naked Calls expire next Friday with the Strike Prices of $19 and $19.50. The earnings report comes out after the close today. As I write, the stock is at $17.75. With a good report I don’t think the stock will go above the $19 Strike Price over night because after doing some research I believe the stock never made a move like that before following an earnings report. BUT, anything can happen! If it’s a good report and the stock keeps moving up during the week, the $19 and $19.50 Calls gives me a little space to make some decisions if I’m contemplating covering both Calls. If it’s a bad report my three Call gives me some nice insurance while the stock moves down. It’s a great company. If the stock goes down I’m not worried it will stay down for long. It’s been moving great lately. We have about an hour and a half before the report comes out. I’ll be watching!<\/p>\n

\n

If you add up all the premiums you’ll see I have $4350 worth of insurance. I’m liking where I stand on this one.<\/p>\n

\n

Steve<\/p>\n

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

If you have been following my resent trades with Micron (MU) you know what I’ve been doing. But I just added to that position so let me explain where I am now. Yesterday I did a Covered Call with MU. Because the company is reporting their earnings after the close today, I decided to sell […]<\/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-2185","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-zf","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2185","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=2185"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2185\/revisions"}],"predecessor-version":[{"id":2187,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2185\/revisions\/2187"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}