![\"\"](\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk2-1.png?resize=86%2C100\")
<\/a>On 1\/14\/20 I bought 1000 shares of Canopy (CGC) at $23.75. I also sold a 10 contract $24 Call for a great premium of $600. That\u2019s a 2.5% return on the premium only. CGC moved up this week, as I hoped, and I was assigned. I made $250 on the stock sale and I keep the $600 premium and this deal is over.<\/p>\nI liked the way the stock moved this week so I wanted to do another Covered Call. This is not the best situation because CGC does not work on margin and I like to use the leverage of margin. I didn\u2019t want to tie up the money with 1000 shares not on margin so I bought 500 shares and sold a 5 contract Call. last week\u2019s CGC was well above my Strike but I waited until the last few minutes of the trading day to see where the stock was gonna go. I ended up buying 500 shares at $25 and selling a 5 contract $25.50 Call to expire next Friday. I only went up 50\u00a2 on the Strike Price because I want to get assigned. I brought in a 60\u00a2 premium for $300 on the 5 contracts.<\/p>\n
Buy 500 Shares CGC @ $25.00<\/strong><\/p>\nSell to Open 5 CGC 1\/24\/20 $25.50 C @ $60\u00a2 (+$300)<\/strong><\/p>\nI don\u2019t like this stock, and even though it\u2019s a Covered Call I give this trade a Risk Factor 2<\/strong>. The little extra fear is that the stock pulls back and I get caught holding the stock for a while.<\/p>\n
\nWatch for my week ending report. I had another great week!<\/p>\n
Successful trading,<\/p>\n
Steve<\/p>\n
The Options Coach<\/em><\/p>\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
Yesterday I sent out an email right at the close reporting trades with Canopy (CGC) and Micron (MU). I had to run out when the market closed so I didn\u2019t have time to write this report. On 1\/13\/20 I bought 1000 shares of MU at $57.50. I also sold a 10 contract Call bringing in […]<\/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-7010","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\/p75MP0-1P4","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7010","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=7010"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7010\/revisions"}],"predecessor-version":[{"id":9737,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7010\/revisions\/9737"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"\"](\"https:\/\/i2.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png\")
<\/a>On 1\/13\/20 I bought 1000 shares of MU at $57.50. I also sold a 10 contract Call bringing in a $600 premium. This Call was expiring at the close yesterday. At the close it was clear I wasn\u2019t gonna get assigned with this Covered Call. My Strike Price was $58 and the stock closed at $57.66. With the market off Monday for MLK Day I wanted to get a jump on selling a new Call because after the weekend, with only 4 days in the week, the premiums would be a little lower. As the trading day was getting close to the closing on Friday I wanted to sell a Call but I wanted to wait until a few minutes before closing because MU was very close to my Strike Price. If I was gonna get assigned I won\u2019t have sold a new Call. With a few minutes left to the day I felt confident the stock wouldn\u2019t get above my Strike so I sold a new 10 contract Call at the close.<\/p>\n