I just sold another 10 Square (SQ) Calls to start next week\u2019s income.<\/p>\n
I bought 1000 shares of SQ at $62.75 on 10\/1\/19, 1 month ago today. Since then I\u2019ve sold \u00a0Calls 5 weeks in a row without being assigned. The 5th Call expiring today at the close. With these 5 weeks of Calls I\u2019ve brought in a total of $3600 in premiums. As I write the stock is up $1.25 (2%) on the day, and it\u2019s at $62.68. Since it\u2019s already up $1.25 today I feel it will not go to my Strike Price of $63 by the close. At least I hope not! I just sold another Call against these shares to expire next week. If I get assigned I will not have the shares to cover this Call to expire next Friday.<\/p>\n
Sell to Open 10 SQ 11\/8\/19 $64.00 C @ $2.15 (+$2125)<\/strong><\/p>\n The Call I just sold is the 6th, 10 contract Call I sold, but this one is a little different. And it could be a potential problem. Sq announces their earning next wednesday, before the my Expiration Date. I do not like to sell Calls on a stock that is about to announces earnings. This is big news and it could cause a big move in the stock. I really didn\u2019t have much choice. I don\u2019t think I\u2019m gonna get assigned today so I feel I\u2019ll own the stock going into Monday. The stock is a little lower than by buy-in price so I don\u2019t want to sell the stock. I looked at the last 6 or 7 earnings dates and there\u2019s no pattern of the stock going up into earnings. It\u2019s very hard to predict what the stock will do before earnings. Since I already brought in $3600 in premiums, and I really like the stock, I decided to sell another Call with a large pre-earnings premium. I received $2.15 which is 3.4% of my buy-in price; this is on top of my lock-in $3600. If the earnings are good the stock will go up, and I\u2019ll get assigned at $64 and keep the large premium. If the stock does not hit the earning\u2019s mark, the stock will go down and I keep the premium. I figured I\u2019ll probably own the stock anyway so I might as well grab the beautiful premium.<\/p>\n Since I feel I would own the stock through earnings, this trade does not add risk. However, since the earning\u2019s report adds a little worry, either way I\u2019ll give this trade a Risk Factor 2<\/strong>.<\/p>\n If I was not already in the stock I would not buy the stock for this deal. So if you mimic my trades, and you do not own the stock, I recommend to pass this one up.<\/p>\n I\u2019m hoping the stock does not hit $63 by the end of the day. And I hope SQ comes out with good earnings and I get assigned for a very nice profit.<\/p>\n Successful Trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" I just sold another 10 Square (SQ) Calls to start next week\u2019s income. I bought 1000 shares of SQ at $62.75 on 10\/1\/19, 1 month ago today. Since then I\u2019ve sold \u00a0Calls 5 weeks in a row without being assigned. The 5th Call expiring today at the close. With these 5 weeks of Calls I\u2019ve […]<\/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-6092","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\/p75MP0-1Ag","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6092","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=6092"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6092\/revisions"}],"predecessor-version":[{"id":7171,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6092\/revisions\/7171"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}