I presently own 2000 shares of Advanced Micro Devices (AMD) and have a 20 contract Covered Call sold against these shares. This Covered Call has a Strike Price of $12. As I write the stock is at $12.20. I am set to deliver my stock tomorrow at the close if it stays above $12. I just sold another 20 contracts of the 3\/16\/18 $12.50 Calls. This expiration date is next Friday. For this Call I received a premium of 40\u00a2 which is $800 on 20 contracts. Since I already have a Call sold against my shares, this will be a Naked Call. AMD has not been very strong lately so I’m hoping it falls below my Strike Price and there is no assignment. If that happens my new Call I sold today will become covered. If I do get assigned, I’ll stay naked because I don’t think it will get to $12.50. If the stock moves up to approach $12.50 and I’m naked, I’ll buy the 2000 shares back.<\/p>\n
<\/p>\n
With this new Call I received a 40\u00a2 premium which is a 3.2% return for a little over a 1 week trade. This is well above my “1 Week\/1%” strategy. This trade will have a Risk Factor 5<\/strong> until the close tomorrow. If I remain naked the Risk Factor will remain a 5. If I’m not assigned on my Covered Call, that Call will expire and the shares I own will cover this new Call and it will become a Risk Factor1.<\/p>\n <\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I presently own 2000 shares of Advanced Micro Devices (AMD) and have a 20 contract Covered Call sold against these shares. This Covered Call has a Strike Price of $12. As I write the stock is at $12.20. I am set to deliver my stock tomorrow at the close if it stays above $12. I […]<\/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-4070","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\/p75MP0-13E","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4070","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=4070"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4070\/revisions"}],"predecessor-version":[{"id":4071,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4070\/revisions\/4071"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}