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| NEW TRADE ALERT |  | |||
| Monday, February 3, 2020 | ||||
| Covered Call Option Buy Back | ||||
 | ||||
| Closed a CCW position with ROKU Inc. (ROKU) this week | ||||
| WHY are you buying back this option? | ||||
| The stock has FALLEN giving me a chance to buy back my option of $9.55 for much cheaper allowing me to pocket the difference and wait for another opportunity later. | ||||
| Being more active then others when it comes to buying back my options, this was a typical situation where the stock had fallen, the option had fallen such that I pocket a decent Krum now, lifting my obligation for the full time frame ... and if my guess is right, I will be able to get a couple green days and possibly write another contract for a credit. > Not everyone does this ... and Im not suggesting it was the right trade at this point ... I did this, I move on for better or worse. | ||||
| So what's the Buy Back trade and how much did you make VS what you thought you'd make | ||||
| ORIGINAL TRADE | NET EFFECT OF THE BUY BACK | |||
| COMPANY | SYMBOL | PREMIUM RECV | BUY BACK COST | |
| ROKU Inc. | ROKU | $9.55 | -$4.60 | |
| WHEN THE STOCK WAS TRADING @ | STOCK IS NOW TRADING @ | |||
| $136.90 | $127.66 | |||
| CCW STRIKE | PREMIUM RECV | DIFFERENCE (MONEY I KEEP) | ||
| $145.00 | $9.55 | $4.95 | $495.00 | |
| EXPIRATION | CONTRACTS | I'M DOWN ON THIS TRADE | ||
| Feb-21 | 1 | -$9.24 | -$924.00 | |
| DIVIDEND? | TOTAL PREM |
READ BELOW FOR NEW PLAN
| ||
| $0.00 | $9.55 | |||
| TOTAL CoC% | ||||
| CoC% shares taken | 12.89% | |||
| CoC% not taken | 3.61% | |||
| Instead of collecting the FULL amount, I collect a Krums of | $495.00 | |||
| I will sit back, run the numbers and look for another trade and hope to collect a credit. | ||||
| Always look at a company's chart ... it tells a story and that story could be UP or DOWN | ||||
| Education Corner | ||||
| Great Covered Call video posted at | ||||
| Covered Call - Description - A covered call is a financial market transaction in which the seller of call options owns the corresponding amount of the underlying instrument, such as shares of a stock or other securities. ... writing (i.e. selling) a call generates income in the form of the premium paid by the option buyer. Source - https://en.wikipedia.org/wiki/Covered_call | ||||
| Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its performance. I have risked my own money and am accountable for the trade results. | ||||
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