Risk Factor 1<\/strong>.<\/p>\nSell to Open 20 RH 9\/29\/17 $74.50 C @ $1.00 (+$2000)<\/p>\n
<\/p>\n
I like my start to the new week. These 2 Calls gave me a total of $4000 in premiums. As long as MU and RH does not tank these 2 trades can give me a nice week.<\/p>\n
<\/p>\n
Steve<\/p>\n
The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"I’m still reeling a bit from the set up and break down of my Oktoberfest, but it’s Monday morning and it’s time to try and get the party paid for lol. This morning I did 2 Covered Calls. One with Micron (MU) and the other with RH (RH). With MU, last week I had 2000 […]<\/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-3564","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-Vu","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3564","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=3564"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3564\/revisions"}],"predecessor-version":[{"id":3565,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3564\/revisions\/3565"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"\"](\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk3.png\")
<\/a>This morning I did 2 Covered Calls. One with Micron (MU) and the other with RH (RH). With MU, last week I had 2000 shares but was assigned on 1000 as a result of a Covered Call where the stock went above my Strike Price. This Covered Call expired this past Friday. The remaining 1000 shares is involved in a LEAP Covered Call. Today I bought another 1000 shares at $35.55. Now I have 2000 shares again and I sold a 20 contract 9\/29\/17 $36.50 Call. With this 20 contract Call, since I only own 2000 shares my LEAP is now Naked. I’m not concerned because it doesn’t expire until January. After this Friday I’ll have my LEAP covered again. I hope this makes sense. The bottom line is I own 2000 shares and have 30 contracts sold. The 20 contracts I sold today and the 10 on the LEAP. Because of having a Naked situation involved in this trade it becomes more risky. This trade gets a Risk Factor 3<\/strong>. The 20 I did today I received a premium of $1.00 for $2000.<\/p>\n