Today on the 1st trading day of 2017 I am starting Main Street beats Wall Street with a clean slate. Having said that, I am holding 10,000 shares of U.S. Steel (X) from 2016 and I just sold a 100 contract Covered Call against them. These shares I purchased on 12/22/16 for $35.73. These shares are now part of a 2017 trade so they are carried over to my “Current Positions” and will be listed in “Trade History 2017” when I exit the position.
I sold 100 contracts of X 1/6/17 $36.50 Calls for a premium of 20¢. On the 100 contracts (10,000 shares) the total premium is $2000. As you see by the 1/6/17 date, these Calls will expire this Friday. This being a Call sold on previously owned stock, I give this trade a Risk Factor of 1. Here’s the sell order:
Sell to Open 100 X 1/6/17 $36.50 C @ 20¢ (+$2000)
It feel great starting a new year!
Results Week Ending 12/30/16
Being so busy New Year’s Eve weekend I didn’t get to do my report on the last week of the year. I figured I’d include it in this post. The final week of the year I had 2 trades, 1 involving U.S. Steel and the other Yelp.
U.S. Steel
On previously owned stock, as the trade above, I sold 100 contracts of a Covered Call against my X shares. With the stock pulling back, the next day i bought my way out of that (option) contract. Below is the order for the selling of the option along with the buying back of the option for a $5500 profit.
Sell to Open 100 X 12/30/16 $36.50 C @ 70¢ (+$7000)
Buy to Close 100 X 12/30/16 $36.50 C @ 15¢ (-$1500)
Profit +$5500
YELP
On 12/27/16 I sold 20 contracts of the Yelp 12/30/16 $41.50 Naked Calls for 40¢ for a total of $800. The stock stayed below my Strike Price of $41.50 and the Call expired. I get to keep the $800 premium. Below is the sell order:
Sell to Open 20 YELP 12/30/16 $41.50 C @ 40¢ (+$800)
Profit +800
The last week of the year was a nice year ending week, keeping the 2 premiums, $5500 & $800.
Weekly Gain $6300
Let’s see if we can have the last week of the year set a precedent for 2017.
Happy New Year!
Steve
The Options Coach