{"id":7155,"date":"2020-02-10T15:53:12","date_gmt":"2020-02-10T20:53:12","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=7155"},"modified":"2021-01-02T22:06:02","modified_gmt":"2021-01-03T03:06:02","slug":"gilead-sciences-covered-call-plus-sold-a-micron-call","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=7155","title":{"rendered":"Gilead Sciences Covered Call, Plus Sold a Micron Call"},"content":{"rendered":"

With the coronavirus being the main subject surround the market I decided to get involved in a biopharmaceutical company. Gilead Sciences (GILD) is one of the big boys with great earnings,<\/p>\n

Gilead Sciences, Inc. is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in areas of unmet medical need. The Company\u2019s portfolio of products and pipeline of investigational drugs includes treatments for Human Immunodeficiency Virus\/Acquired Immune Deficiency Syndrome (HIV\/AIDS), liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions.<\/p>\n

\"\"<\/a>I didn\u2019t get into the stock for a long term investment. I noticed the stock had some nice premiums so I got into this position for a one week premium play. I bought 400 shares of the stock at $68.90 and I sold 4 contracts of the 2\/14\/20 $69 Call for a $1.25 premium. This gives me a $500 premium for a return of 1.8% in 5 days.<\/p>\n

Buy 400 Shares GILD @ $68.90<\/strong><\/p>\n

Sell to Open 4 GILD 2\/14\/20 $69.00 C @ $1.25 (+$500)<\/strong><\/p>\n

This trade fits into my \u201c1 Week\/1%<\/span><\/a>\u201d strategy. This trade get a Risk Factor 1<\/strong>. As an options seller for premiums, this is a perfect example of what I look for. As I write the stock is already up to $69.10. I\u2019m looking for the stock to stay above my Strike Price of $68.90 and get assigned. If this happens I make a $500 premium plus $100 on the stock assignment. This will be a nice $600 deal for a 1 week investment.<\/p>\n

\n

\"\"<\/a>As I was writing I was also filled on a Micron (MU) Call. I own 1000 shares of MU at $57.50. I was filled on an order I placed earlier today. I sold 10 contracts of the 2\/14\/20 $58 Call for a 75\u00a2 premium. This is another $750 premium for a 1 week trade. It is a 1.3% return and the trade also fits into my \u201c1 Week\/1%\u201d strategy.<\/p>\n

Sell to Open 10 MU 2\/14\/20 $58.00 C @ 75\u00a2 (+$750)<\/p>\n

This trade also get a Risk Factor 1<\/strong>.<\/p>\n

\n

I would also like you to look at my Wealth Builder Portfolios<\/strong><\/a> <\/span>page. Take a look at the Double Dipping Portfolio<\/strong>. AT&T is the 1st position that received dividend reinvestment shares. I start the portfolio position with 500 shares and received 6.92 shares as a dividend payment. The portfolio now holds 506.92 shares of AT&T. I will now get paid a dividend on my 506.92 shares and not only 500 shares. I\u2019m Double Dipping!<\/p>\n

Successful trading,<\/p>\n

Steve<\/p>\n

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

With the coronavirus being the main subject surround the market I decided to get involved in a biopharmaceutical company. Gilead Sciences (GILD) is one of the big boys with great earnings, Gilead Sciences, Inc. is a research-based biopharmaceutical company that discovers, develops and commercializes medicines in areas of unmet medical need. The Company\u2019s portfolio of […]<\/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-7155","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\/p75MP0-1Rp","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7155","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=7155"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7155\/revisions"}],"predecessor-version":[{"id":9758,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7155\/revisions\/9758"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}