This afternoon I was filled on JBL Calls while I was away from my computer.<\/p>\n
Today was a very busy day for me. I was at my computer this morning but had to leave my office early. I placed orders for 4 trades but was filled on 1.<\/p>\n
I just got home from a long day not of the house. I was filled on a 10 contract 1\/31\/20 $44 Call with Jabil (JBL).<\/p>\n
On 12\/9\/19 I bought a 10 contract LEAPS with JBL. This has a Strike Price of $42 and won\u2019t expire until 1\/21\/22. Dedicated readers know I like to sell Calls against my LEAPS. These positions are called Diagonal Bull Call Spreads, or just Diagonal Call Spreads. This is when you form a Covered Call my selling a Call against an option position instead of buying the stock to cover the Call. The LEAPS option must have a longer contract, and the Strike Price must be higher than the Strike price of the LEAPS. In this case my LEAPS has a Strike of $42 and the Call I sold has a Strike of $44. This is consider covered because I have the \u201cright\u201d to buy the stock at $42 if I have to deliver the shares at $44.<\/p>\n
\u00a0Sell to Open 10 JBL 1\/31\/20 $44.00 C @ 35\u00a2 (+$350)<\/strong><\/p>\n This Call only gave me 35\u00a2 premium for $350. With a $42.10 stock the premium is not the 1% I look for. This is not my normal trade! When I sell Calls against my LEAPS I just want to bring in some money while holding my long term LEAPS option. This is one of the moves that makes options trading so great. The reason the premium is a little lower is because I go a little higher on the Strike Price because I don\u2019t want to get assigned. This Call will not expire until 1\/31\/20, 16 days away.<\/p>\n The stock is at $42.10. I don\u2019t think I\u2019ll get assigned at $44. Either way they\u2019ll have an extra $350 in my account.<\/p>\n Sorry for the late notice.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" This afternoon I was filled on JBL Calls while I was away from my computer. Today was a very busy day for me. I was at my computer this morning but had to leave my office early. I placed orders for 4 trades but was filled on 1. I just got home from a long […]<\/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-6981","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\/p75MP0-1OB","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6981","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=6981"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6981\/revisions"}],"predecessor-version":[{"id":9735,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6981\/revisions\/9735"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}