Executed on a $40.50 Short Call

I just sent out a report on getting out of U.S. Steel (X). In that report, at the end, I mentioned I put in an order to sell 50 contracts of the 2/24/17 $40.50 Naked Call That Call was just executed! This is a Naked Call on a very volatile stock so I give this trade a Risk Factor 5. At the moment this Call is 75¢ Out-of-the-Money. Monday morning I’ll be watching this position closely. Here’s the order:

Sell to Open 50 X 2/24/17 $40.50 C @ 65¢ (+$3250)

 

I could have went for the $40 Call for 85¢ but I decided on the $40.50 for the 65¢. The 40.50 Call gives me a little less risk on a Naked Call, plus the 65¢ gives me a premium of $3250 which is above my $3000 per week goal in my “2017 Challenge.”

If you haven’t read my challenge please do so. It’s quite interesting.

 

Steve

The Options Coach

Leave a Reply

Your email address will not be published. Required fields are marked *