Yesterday I sold 5 Calls against 500 shares of Cree I own. I sold 5 Cree 3\/29\/19 $60 Calls for a premium of 80\u00a2. Selling this option brought me in a premium of $400. Today with the market down, so is Cree. I placed an order to “Buy to Close” this option for 20\u00a2 ($100). I was just filled on that order. I sold the option for $400 and I bought it back for $100 giving me a $300 profit in 1 day. This position is now closed. I no longer have the obligation to deliver the 500 shares of Cree at $60, if it hits that by next Friday. If this is just a 1 day drop in the market I think Cree will hit $60 within the week. This is why I took the profit and closed the contract to deliver the stock. If I held on to the option for the next week I would have only received another $100. I think this was a good move. With a full week until expiration I’d rather have the stock with no strings attached. Especially since I was able to keep 75% of the premium. Below are the 2 trades to open and close this position.<\/p>\n
Some of you might know, if I get into a position and I’m able to get out keeping half my premium and there is still a lot of time left until expiration, I’ll get out. The market moves so crazy sometimes I like to take some profit and stick it in my mattress.<\/p>\n
\u00a0<\/p>\n
Steve<\/p>\n
The Options Coach<\/em><\/p>\n\n\n Yesterday I sold 5 Calls against 500 shares of Cree I own. I sold 5 Cree 3\/29\/19 $60 Calls for a premium of 80\u00a2. Selling this option brought me in a premium of $400. Today with the market down, so is Cree. I placed an order to “Buy to Close” this option for 20\u00a2 ($100). […]<\/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-4787","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\/p75MP0-1fd","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4787","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=4787"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4787\/revisions"}],"predecessor-version":[{"id":4788,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/4787\/revisions\/4788"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/p>\n","protected":false},"excerpt":{"rendered":"