{"id":3342,"date":"2017-07-17T11:55:42","date_gmt":"2017-07-17T15:55:42","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3342"},"modified":"2017-07-17T11:55:42","modified_gmt":"2017-07-17T15:55:42","slug":"covered-calls-with-wtw-rh","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3342","title":{"rendered":"Covered Calls with WTW & RH"},"content":{"rendered":"

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

This morning Weight Watchers (WTW) was up but looking at the Relative Strength Index<\/span><\/a> (RSI) it looked like it may pull back a little. WTW is a very hot stock but I decided to sell a Call while the stock was up with the hopes of buying the stock if it dropped back. With the stock at $36.25 I sold 10 contracts of the 7\/21\/17 $36.50 Calls. I received a premium of 55\u00a2 for a total of $550. The stock did drop a little as I hoped it would and I bought 1000 shares at $36.08. This trade is now a Covered Call so it gets a Risk Factor 1<\/strong>. Getting 55\u00a2 on a $36 stock is 1.5%. Being a 1 week trade, this trade fits into my “1 Week\/1%<\/span><\/a>” strategy.<\/p>\n

Weight Watchers Covered Call<\/strong><\/span><\/p>\n

Buy 1000 Shares WTW @ $36.08<\/p>\n

\u00a0Sell to Open 10 WTW 7\/21\/17 $36.50 C @ 55\u00a2 (+$550)<\/p>\n

 <\/p>\n

With RH, I still own 1500 shares. I just sold 15 contracts of the 7\/21\/17 $70 Calls with the stock at $67.50. Last week I sold a $70 Call on these shares but I wasn’t assigned. With that Call I received a premium of 45\u00a2 on a 3 day Call. With this Call today I received a premium of $1.25 for a 5 day Call. Not bad! This is a Call sold on previously owned shares so this is a Covered Call and it gets a Risk Factor 1<\/strong>.<\/p>\n

Sell to Open 15 RH 7\/17\/17 $70 C @ $1.25 (+$1875)<\/p>\n

 <\/p>\n

I had Calls sold last week on U S Steel and Advanced Micro Devices to expire this Friday. With last weeks trades and the 2 I made today I already look pretty good to bring in some nice money for this week.<\/p>\n

 <\/p>\n

Steve<\/p>\n

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

This morning Weight Watchers (WTW) was up but looking at the Relative Strength Index (RSI) it looked like it may pull back a little. WTW is a very hot stock but I decided to sell a Call while the stock was up with the hopes of buying the stock if it dropped back. With the […]<\/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-3342","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-RU","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3342","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=3342"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3342\/revisions"}],"predecessor-version":[{"id":3343,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3342\/revisions\/3343"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}