![\"\"](\"http:\/\/i1.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png\")
<\/a>I was just filled on a Micron (MU) \u201cBuy-Write<\/a><\/span>.\u201d Mu received an upgrade this morning and I wanted to bring in a little money while it\u2019s moving. Some may think I have conflicting positions because yesterday I bought a Call with MU and today I sold a Call. Well, I don\u2019t claim to be the sharpest guy but I do say I know how to bring money into my account. And I think both of these positions will make money for me. One thing that can throw a monkey wrench into my money making scheme is the Fed giving us a surprise tomorrow. The market is expecting a one quarter point reduction in the prime rate. If Powell decides that he had enough with Trump trying to intimidate him into this reduction, and decides to leave rates alone, it can cause a huge pullback in the market. The Fed is suppose to be completely independent and Trump is making his opinion well known that he wants a big rate cut. Maybe trump is calling for a \u201cbig\u201d rate cut so if Powell makes a small, one quarter point cut, he let\u2019s Powell \u201csave face\u201d and send a message that he is in charge of the rate issue. Whatever is going on in the minds of these 2 guys, who knows? But I hope there is the predicted cut. If not, this would be the monkey wrench I talk about.<\/p>\nToday\u2019s trade was a \u201cBuy-Write.\u201d I bought 1000 shares of MU at $47.15 and sold 10 contracts of the MU 8\/2\/19 $48 Call. This Call brought in a premium of 62\u00a2 for $620.<\/p>\n
Buy 1000 Shares MU @ $7.15<\/strong><\/p>\n Sell to Open 10 MU 8\/2\/19 $48.00 C @ 62\u00a2 (+$620)<\/strong><\/p>\n What do I hope happens with this stock so I make money with the Call I bought yesterday and the Call I sold today? I hope the stock goes up above my Strike Price of $48 and I get assigned. If I get assigned I\u2019ll make $850 on the stock sale and I\u2019ll keep the premium from the sale of the option, which is the $620. If it does I\u2019ll make a total of $1470 on the \u201cBuy-Write.\u201d<\/p>\n If the stock goes up to the point that I get assigned I\u2019ll make money with the long Call I bought yesterday. Right now the stock is up to $47.50 as I write. I will definitely be in my \u201cBuy-Write\u201d Covered Call until Friday, but I could very well be out of my long Call by then.<\/p>\n Today\u2019s trade is a Covered Call on a very good stock that received an upgrade today. This is the safest trade you can make with options. It gets a Risk Factor 1<\/strong>.<\/p>\n Apple\u2019s earning come out after the bell. If they\u2019re good it can be a boost for the market tomorrow.<\/p>\n It\u2019s only Tuesday, and anything can happen, but if this trade I made today works out well, this will be another great week. Like I said, it\u2019s only Tuesday!<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" \u00a0 I was just filled on a Micron (MU) \u201cBuy-Write.\u201d Mu received an upgrade this morning and I wanted to bring in a little money while it\u2019s moving. Some may think I have conflicting positions because yesterday I bought a Call with MU and today I sold a Call. Well, I don\u2019t claim to be […]<\/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-5391","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\/p75MP0-1oX","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5391","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=5391"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5391\/revisions"}],"predecessor-version":[{"id":5678,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5391\/revisions\/5678"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}