I sold a Call on U.S. Steel about 10 minutes before the close and sent out a post. I checked my email to see how the post looked and it wasn’t in my email. I have no idea what happened but for some reason the email didn’t go out and the post didn’t get posted in my blog section. I have no idea why but I’m posting the trade again.
“Main Street beats Wall Street” readers know I had 10,000 shares of U.S. Steel (X) put to me after the close on Friday. My Strike Price was $19.50 and the stock closed at $18.90. I bought the stock at $19.50 and today the stock went up. With the stock at $19.50 about 10 minutes before the close I was preparing to sell my 10,000 shares just to get out because I liked the way my account looked. Right before I hit the sell button I decided to sell a 100 contract Call. I sold the $19.50 Calls expiring this Friday and received a premium of $.41 for a total of $4100. I thought this was a great premium for a week with only 3 more days because of the shortened week. Now I have 10,000 shares with a 100 contract Call sold expiring in January and a 100 contract Call expiring this Friday. I hope the stock doesn’t tank but even if it did my Calls will increase while the stock goes down because they are Short positions. I feel pretty good about this position. The Call expiring this Friday is a Covered Call with a previously owned stock so I give this trade a Risk Factor of 1. Here’s the order:
Sell to Open 100 X 9/9/16 $19.50 C @ $.41 (+$4100)
Any questions, send me an email.
Steve
The Options Coach