Yesterday I sold a 10 contract Naked Call on Weight Watchers (WTW). I held the position for an hour and I made a quick $300. The stock pulled back after I sold the Call; since it was a Naked Call and I could get out in such a short time, I decided to grab the $300 to end the position.<\/p>\n\n\n\n
Also, yesterday, WTW continued moving down. And the stock really took a beating after earnings last week. Today the stock is up over a $1. Since last June Oprah, as a huge shareholder, took a $500 million hit. I do not see her taking that laying down. I think we will at least get a “Dead Cat Bounce.” With this in mind I just did a 10 contract At-the-Money Buy-Write. With this trade I’m only looking to make the premium and get out. The reason I bought the stock to cover my Call is just in case we get that “Dead Cat Bounce” I will not be holding a Naked Call. Below are the positions of my Buy-Write.<\/p>\n\n\n\n
Weight Watchers Buy-Write<\/strong><\/p>\n\n\n\n Buy 1000 Shares WTW @ $22.00<\/p>\n\n\n\n Sell to Open 10 3\/8\/19 $22.00 C @ .60 (+$600)<\/p>\n\n\n\n I’m looking for the stock to go above my Strike Price of $22 by this Friday, when my Call expires. If this happens, I will be assigned on the 1000 shares of stock at the same price I bought them for. However, I will keep the $600 premium I received for selling the Call. Like I said, I’m in this position for the premium ONLY! If I wanted to make money on the stock I would have sold the Strike Price of $22.50 or $23. If I did this I would have made much less with the premium. I’m in this game for the premiums.<\/p>\n\n\n\n Since this is an At-the-Money Covered Call I give this trade a Risk Factor 1<\/strong>.<\/p>\n\n\n\n Send me an email if you have any questions about this move.<\/p>\n\n\n\n Steve<\/p>\n\n\n\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Yesterday I sold a 10 contract Naked Call on Weight Watchers (WTW). I held the position for an hour and I made a quick $300. The stock pulled back after I sold the Call; since it was a Naked Call and I could get out in such a short time, I decided to grab 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-4652","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\/p75MP0-1d2","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4652","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=4652"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4652\/revisions"}],"predecessor-version":[{"id":4653,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4652\/revisions\/4653"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}