Right now it’s 11:15 in Italy and it’s 5:15 in NYC. The market closed a little while ago but before I went out to dinner I put in an order to sell an option. I just got home and I see I was executed on my Call. I sold 50 contracts of the U.S. Steel (X) 6/10/16 $16.50 Calls and I received a $.23 ($1150) premium. This is a Naked Call. I own 1000 shares of X but I have a Call sold on them. These Calls don’t expire until 7/15/16 so if X hits my Strike Price by this Friday the 10th I’ll make a decision if I want to use my shares to cover the Call expiring this Friday or make an adjustment trade to deal with it. I hope X stays below my Strike Price so I don’t have to deal with a problem. I give this trade a Risk Factor of 3 because it is a Naked Call but I have options if things don’t go my way. Lets see what happens. Here’s the option sale order:
Sell to Open 10 X 6/10/16 $16.50 C @ $.23 (+$1150)
If you have a question on what I’m doing and thinking with this trade please email me. I will find time to answer your question.
Steve
The Options Coach