The first two lines are already done now. The $549 in premium was received back on Sep 22nd. The shares are now bought for $79 x 400 = $31,600.

November 21

The goal is to sell those shares on Nov21 for $80, and for that we’re going to post a SHORT CALL contract x 4 to do so. In this case now, we’re not actually SHORT. We’re COVERED. The term for this is called “Covered Calls” which means we have the shares to cover our short position. So we look out in time to November 21, and try to make a sale for these calls. I can either do this right away here on Oct 17th, maybe because I am unsure that next week won’t be uglier than this week, and we won’t get a good price. If I think next week should improve, then maybe I wait a few days prior to selling the short calls. 

We have to let this brew for a month before knowing how it worked out. There are other things to do with this weeks expiry cycle, but this particular part stands out because it ended ITM, In the Money. So next time I use that term, ITM you will know what the impending consequences of it might mean. It doesn’t always mean I will handle it in the same way because there are other circumstances which could influence whether I roll out, or take assignment. When that day comes, we will discuss it.