{"id":5793,"date":"2019-09-30T15:01:43","date_gmt":"2019-09-30T19:01:43","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=5793"},"modified":"2019-11-01T16:11:50","modified_gmt":"2019-11-01T20:11:50","slug":"sold-10-naked-calls-on-sq-i-sold-5-micron-puts","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=5793","title":{"rendered":"Sold 10 Naked Calls on SQ & I Sold 5 Micron Puts"},"content":{"rendered":"

\u00a0<\/p>\n

\"\"<\/a>I was just filled on a Naked Calls on Square (SQ) and sold 5 Micron (MU) Puts.<\/p>\n

Last Tuesday SQ hit it\u2019s lowest price since January 3rd. On Tuesday it was down to $54.41, which turned out to be support and a reversal. Since Tuesday it\u2019s been moving up. Today it\u2019s high was $62.24. Since last Tuesday the stocks up $7.87; that\u2019s in 5 sessions. Today as I write the stock is up $1.22.<\/p>\n

I wanted to sell a Call because I liked the premiums. The premiums are a little higher because of the stock\u2019s move. However, I didn\u2019t want to own the stock. I decided to sell a Naked Call. The way the stock is moving I might not be Naked long but I\u2019m thinking it might slow down a bit because of it\u2019s big move. But, to protect myself, I place a buy order if the stock goes up to $62.75. I sold 10 SQ 10\/4\/19 $63 Calls for a premium of 70\u00a2, for $700. This option will expire this Friday.<\/p>\n

Sell to Open 10 SQ 10\/4\/19 $62.00 C @ 70\u00a2 (+$700)<\/strong><\/p>\n

Normally a Naked Call would get a risk factor 5 but since I placed a buy order to cover it I\u2019ll give this trade a Risk Factor 3<\/strong>. It gets a 3 and not a 1 because there\u2019s always a chance the stock can go up over night and my buy order will not get filled.<\/p>\n

\n

\"\"<\/a>I also had an order placed to sell 5 Puts on Micron (MU). As I was writing the above notice of the SQ trade I was filled on my MU trade. MU moved down last week and today it looks like it might have hit support. Today the stock\u2019s up 10\u00a2. I feel the stock might go up this week so I sold 5 Puts. With the stock at $43.35 I sold 5 $42.50 Puts. I received a premium of 45\u00a2. I like the stock so if I have 500 shares put to me I\u2019m very confident the stock will not stay that low too long. Since I like the stock this is not a risky trade to me. I\u2019ll give it a Risk Factor 2<\/strong>.<\/p>\n

Sell to Open 5 MU 10\/4\/19 $42.50 P @ 45\u00a2 (+$225)\u00a0<\/strong><\/p>\n

\n

Keep an eye on your email. I\u2019m gonna try to make a few more trades this week.<\/p>\n

If you have any questions on how Puts work send me an email.<\/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 Naked Calls on Square (SQ) and sold 5 Micron (MU) Puts. Last Tuesday SQ hit it\u2019s lowest price since January 3rd. On Tuesday it was down to $54.41, which turned out to be support and a reversal. Since Tuesday it\u2019s been moving up. Today it\u2019s high was $62.24. […]<\/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-5793","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\/p75MP0-1vr","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5793","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=5793"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5793\/revisions"}],"predecessor-version":[{"id":6109,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/5793\/revisions\/6109"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}