On 5/6/16 I bought 5000 shares of U.S. Steel (X). I have also been selling Calls on the shares. Right now I have 2 Calls still active. Each one was for 50 contracts (5000). Since I only owned 5000 shares, one set of Calls was covered and the other was Naked. I just sold the 5000 shares so now both Calls are Naked. I did this because I wanted to get rid of my shares to alleviate myself from the margin interest. Plus, I’m hoping the stock will go down. I really don’t like the way the market’s moving so I don’t want to own stock. I got out of the stock with only a $.13 profit but on 5000 shares that’s $650. I still have to worry about my Naked Calls. If the Calls are In-the-Money on Expiration Date I can always do a Roll Out to make sure I make profit when the deals are over. I bought the stock for $17.87 and I sold for $18.
Total profit $650
As I finished writing this X is dropping back a little…which makes me happy. It’s at $17.92.
I have one more trade before the close. I have to Roll Out my YELP Calls.
Steve
The Options Coach