I am not a day trader! But when I have an opportunity to grab some profit I will, especially when it’s a Naked Call. Even if the exiting trade takes place in the same day as I entered the position. About 2 hours ago I sold 50 Naked contracts on U.S. Steel (X). Here’s the sell order:
Sell to Open 50 X 5/6/16 $20.50 C @ $.25 (+$1250)
U.S. Steel has been all over the place today. When the stock was down I put in an order to close this position. I was willing to pay $.07 ($350) to get out and I was just executed. I received $1250 on the sale and I bought out for$350 for a profit of $900 in about 2 hours. Here’s the buy order to exit the position:
Buy to Close 50 X 5/6/16 $20/50 C @ $.07 (-$350)
Profit +$900
This money is in my mattress
It’s May! Be very careful! Read my Message of the Day from May 2nd.
Steve
The Options Coach