On 8/1/16 I sold 50 contracts of the Yelp $34.50 Calls to expire this Friday. Yelp’s earnings report comes out after the close today. I feel the earnings will be good but I don’t like being in this position, relying on a good report to be successful. The reason I’m in this Yelp Call now, with earnings due, is because I had to do a Roll Out on an older position. You can see the trades in my Active trades. The main point is, I have this Naked 50 contract Call and I’m worried about the earnings report so I just bought the 5000 shares to cover my Call. I now have a 50 contract Covered Call on Yelp expiring this Friday. As I write the stock is at $32.60 but I was executed at $32.75. With my Strike Price at $34.50, I’m hoping the earnings come out great and the stock goes up above my Strike and I get assigned at $34.50. Most of the times the stock will not move the way you want. You know, Murphy’s Law! The earnings will be out in about a half hour. Lets hope for the best. Here’s the buy order for the stock:
Buy 5000 shares YELP @ $32.75
Steve
The Options Coach