{"id":6960,"date":"2020-01-13T15:39:04","date_gmt":"2020-01-13T20:39:04","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=6960"},"modified":"2021-01-02T20:58:34","modified_gmt":"2021-01-03T01:58:34","slug":"apple-covered-call","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=6960","title":{"rendered":"Apple Covered call"},"content":{"rendered":"

I just made a trade with Apple (AAPL).<\/p>\n

After getting out of a few position last week I had a large margin account to invest with this week. About 20 minutes ago I bought 200 shares of AAPL to do a Covered Call with. I was looking for a safe trade and AAPL is the hottest stock right now.<\/p>\n

\"\"<\/a>Like I said, 20 minutes ago I bought 200 shares of AAPL at $313.65. I put is a trade offer for 2 contracts of the 1\/17\/20 $317.50 Calls for a premium of $2.50 and I was waiting to get filled. From my buy price of $313.65, the stock went up to $314.95 and I got filled.<\/p>\n

Buy 200 Shares AAPL @ $313.65<\/strong><\/p>\n

Sell to Open 2 AAPL 1\/17\/20 $317.50 C @ $2.50 (+$500)<\/strong><\/p>\n

AAPL has been receiving upgrades everyday. The last was with a target price of $375. Even if I don\u2019t get assigned I\u2019m OK with owning the shares. This is a Covered Call on a crazy hot stock so I don\u2019t feel any risk at all. The trade gets a Risk Factor 1<\/strong>.<\/p>\n

\n

Back on 9\/16\/19 I bought 10 DISH $35 Calls to expire on June 19th. The stock is up 65\u00a2 today but the stock is not moving the way I predicted in the beginning. When I bought the $35 Call the stock was at $36. The stock is at $36 today. The Time Decay<\/a> <\/span>is gonna start hurting me. Even though the stock is at the same price as when I bought the Call the premium is down about $2 because of time passing by. It is so important to understand Time Decay if you want to be an options trader. Because I understand this concept I started to bail out of this position. Today I sold 2 of my 10 Calls. I\u2019ll start cutting my loses and hold part of the position in the case the stock continues up. In the order forms below I\u2019ll list buying 2 contracts and selling 2 contracts. The remaining 8 contracts will remain on my \u201cActive Trades\u201d page.<\/p>\n

9\/16\/19 \u2013 ($36.00) Buy to Open 2 DISH 6\/19\/20 $35.00 C @ $6.30<\/strong><\/p>\n

1\/13\/20 \u2013 Sell to Close 2 DISH 6\/19\/20 $35.00 C @ $4.40<\/strong><\/p>\n

Loss -$380<\/strong><\/span><\/h4>\n

I would love for DISH to start moving. I\u2019ll watch it closely. If it doesn\u2019t I\u2019ll be selling more very soon.<\/p>\n

As I\u2019m writing about DISH, Apple continues moving up!<\/p>\n

Successful trading,<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

I just made a trade with Apple (AAPL). After getting out of a few position last week I had a large margin account to invest with this week. About 20 minutes ago I bought 200 shares of AAPL to do a Covered Call with. I was looking for a safe trade and AAPL is the […]<\/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-6960","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\/p75MP0-1Og","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6960","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=6960"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6960\/revisions"}],"predecessor-version":[{"id":9732,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6960\/revisions\/9732"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6960"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}