I have a Covered Call with Advance Micro Devices (AMD) that expires this Friday. As I write the stock is at $13.80 and that Covered Call has a Strike Price of $15. I feel like I’m not gonna get assigned this Friday which would mean I’ll keep the premium of the Call and I’d still own the 2000 shares. Since I feel I’ll still own the stock next week I just sold a Call to expire the 28th. The only problem is AMD’s earnings come out on the 25th. I didn’t want to be involved in a position going into earnings but in my opinion I’ll own 2000 shares. With that said, I decided to sell a Call which will be a little insurance if the stock goes down after earnings. I hope this makes sense. If not please send me an email.<\/p>\n
If I get assigned this Friday, today’s trade will be a Risk Factor 5,<\/strong> because I won’t own the 2000 shares and I’ll have a Naked Call going into earnings. If I don’t get assigned the Call that is part of my existing Covered Call will expire and the Call I sold today will be part of a new Covered Call, so today’s trade will change to a Risk Factor 1<\/strong>.<\/p>\n <\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I have a Covered Call with Advance Micro Devices (AMD) that expires this Friday. As I write the stock is at $13.80 and that Covered Call has a Strike Price of $15. I feel like I’m not gonna get assigned this Friday which would mean I’ll keep the premium of the Call and I’d still […]<\/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-3346","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-RY","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3346","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=3346"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3346\/revisions"}],"predecessor-version":[{"id":3347,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3346\/revisions\/3347"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Sell to Open 20 AMD 7\/28\/17 $15 C @ 45\u00a2 (+$900)<\/h4>\n