I was filled on selling a Call to expire today, and another Call for next Friday.<\/p>\n
I bought 1000 shares of Square (SQ) on 10\/1\/19 for $62.75. With these shares I sold numerous 10 contract Calls. The Calls expire on 10\/4, 10\/11 and 10\/18. I was not assigned on any of these Calls so I just kept selling and I brought in a total of $2400 in premiums.<\/p>\n
This week SQ took a little dip and I wasn\u2019t able to get a Call sold to expire today. Well, that just changed! Sq is up today and with the stock at $62.50 I sold a 10 contract Call to expire today at the close. I do not think the stock is gonna go much higher so I sold a $63 Call. It\u2019s the only Strike Price where I could get anything because of the Expiration Date in a few hours. I have so much confidence the Stock will not hit $63 I sold the Call for a small premium of $200. It sounds small but $200 in a few hours, I\u2019ll take it!<\/p>\n
Sell to Open 10 10\/25\/19 $63.00 C @ 20\u00a2 (+$200)<\/strong><\/p>\n Not only did I sell this Call. Since I feel I will not get assigned, I sold another $63 Call to expire next Friday, 11\/1. For this Call I received a premium of $1.<\/p>\n I received 20\u00a2 for 1 Call and $1 for the other. The stock was at the same price! The difference in the Time Value. Time Value<\/a><\/span> and Time Decay<\/a> <\/span>is very important to understand if you want to be an options trader.<\/p>\n Sell to Open 10 SQ 11\/1\/19 $63.00 C @ $1.00 (+$1000)\u00a0<\/strong><\/p>\n The Trade above to expire today gets a Risk Factor 1<\/strong>. This is a Covered Call to expire today. The second trade I\u2019ll give a Risk Factor 2<\/strong>. This will be a Risk Factor only until the close today. Then that will become a Covered Call when the 1st trade expires. If for some reason I\u2019m wrong and the stock goes up above the $63 Strike, I\u2019ll get assigned. If that happened I\u2019ll buy another 1000 shares to cover the 2nd Call. I\u2019ll buy the 1000 shares after the close in the after market.<\/p>\n Any question on these trades send me an email.<\/p>\n Last Wednesday I bought a Call on VIPS. I bought the 1\/17\/20 $9.00 Call because the stock was listed in the unusually Activity and I liked the candlestick chart. I bought a 10 contract Call for $1.30 ($1300). When reporting the trade I said I wanted to be in the trade for a week or 2. The stock has been moving and today I placed an order to get out. As I was writing the post above, selling the 2 SQ Calls, I was filled on my order. So I\u2019m adding the report into this post. I sold my Long Call for $2.25.<\/p>\n 10\/16\/19 \u2013 Buy to Open 10 VIPS 1\/17\/20 $9.00 C @ $1.30 ($1,300)<\/strong><\/p>\n 10\/25\/19 \u2013 Sell to Close 10 VIPS 1\/17\/20 $9.00 C @ $2.25 ($2,250)<\/strong><\/p>\n I invested $1300 and made a profit of $950. That\u2019s a 73% return in 1 week. This is the power of buying options. Let me be very clear, this is a great return, however, buying options is very dangerous! I do not do it often and when I do I go out on the Expiration Date for Time Decay protection. I knew I wanted to be in this trade for a week or 2 but I went out to January of 2020. VIPS may go up higher but I\u2019m discipline! When I saw a great profit I jumped out. When buying options you must have your exit planned ahead of time. If you don\u2019t do it correctly, read my lips, you will lose money!<\/p>\n Successful Trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I was filled on selling a Call to expire today, and another Call for next Friday. I bought 1000 shares of Square (SQ) on 10\/1\/19 for $62.75. With these shares I sold numerous 10 contract Calls. The Calls expire on 10\/4, 10\/11 and 10\/18. I was not assigned on any of these Calls so I […]<\/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-6021","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\/p75MP0-1z7","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6021","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=6021"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6021\/revisions"}],"predecessor-version":[{"id":6510,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6021\/revisions\/6510"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nProfit $950<\/strong><\/span><\/h4>\n