{"id":4784,"date":"2019-03-21T11:49:47","date_gmt":"2019-03-21T15:49:47","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=4784"},"modified":"2019-03-21T11:49:55","modified_gmt":"2019-03-21T15:49:55","slug":"sold-5-cree-calls","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=4784","title":{"rendered":"Sold 5 Cree Calls"},"content":{"rendered":"

\"\"<\/a>Yesterday I bought 500 shares of Cree (CREE) on an upgrade by J P Morgan. I bought the shares at $57.70 per share. I bought the shares with the intention of selling 5 Calls later in the day. The stock went up a little after I bought but I didn’t see any options I liked to get my Call sold. Today with the market up and Cree up $1.50 I just got a Call sold.<\/p>\n

I sold 5 CREE 3\/29\/19 $60 Calls for a premium of 80\u00a2. This option will expire next Friday and the total premium on the 500 shares is $400. I feel with the upgrade Cree will continue up. I sold the Call to pocket the $400 in the case it doesn’t continue moving up. And I’ll have a $400 hedge if the stock goes down. If the stock gets above $60 by my Expiration Date I’ll get assigned. My profit on the stock will be $1150 plus I’ll keep the $400 premium. That would be a total profit of $1550. If the stock doesn’t go above $60 by next Friday, I keep the $400 premium and I’ll keep my 500 shares of Cree. Since Cree is a hot stock with an “outperform” rating, I will not mind keeping the stock. Here’s the sell order:<\/p>\n

Sell to Open 5 CREE 3\/29\/19 $60 C @ 80\u00a2 (+$400)<\/h4>\n

This Call expires in a little over a week. Receiving an 80\u00a2 premium on a stock I bought for $57.70 is about a 1.4% Rate of Return<\/a><\/span> in a week. This trade fits into my “1 Week\/1%<\/a><\/span>” strategy.<\/p>\n

This trade is a Covered Call on a very good stock so it gets a Risk Factor 1<\/strong>.<\/p>\n

If I get assigned on the stock my profit will be $1550. In this case my Rate of Return will be 5.3%. Not a bad 1 week trade!<\/p>\n

Steve<\/p>\n

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

Yesterday I bought 500 shares of Cree (CREE) on an upgrade by J P Morgan. I bought the shares at $57.70 per share. I bought the shares with the intention of selling 5 Calls later in the day. The stock went up a little after I bought but I didn’t see any options I liked […]<\/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-4784","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\/p75MP0-1fa","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4784","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=4784"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4784\/revisions"}],"predecessor-version":[{"id":4785,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4784\/revisions\/4785"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}