Well the 1st week of the new year is in the books. I’m very happy with what I did this week. I locked in a lot less than the 1st week of 2016 but this week is the beginning of my new plan for 2017. You can go to Trade History 2016 to see the first week of last year. The weekly gain for that week was $12,620 which was unbelievable! That was the opening week of a brand new website/blog I called Main Street beats Wall Street; I guess I had something to prove. This year I have a different plan and I’ll be writing about that plan in the next day or so. Let’s take a look at the 1st week of 2017.
U.S. Steel
This year’s trades started on opening day which was Tuesday 1/3/17. I own 10,000 shares of U.S. Steel (X) which I carried over from 2016. Against those shares I sold 100 contracts of the X $36.50 Calls to expire on Friday 1/6/17. The premium I received was 20¢. May not sound like much but on the 100 contracts (10,000 shares) the total premium was $2000. My Strike Price was $36.50 and the stock closed on Friday at $35.40. This Call expired and this trade is done! I keep the entire premium of $2000. Below is the Option Order Form for the sale of the option and the form explaining the option has expired:
Sell to Open 100 X 1/6/17 $36.50 C @ 20¢ (+$2000)
Expired 100 X 1/6/17 $36.50 C
Profit +$2000
Micron
On Wednesday the 4th I my 2nd trade of the opening week involving Micron (MU). Originally I sold 30 Naked contracts of the MU $22.50 Calls also expiring Friday. This Call gave me a premium of 35¢ for a total premium of $1050 for the 30 contracts. Later in the day with MU hanging around my Strike Price I bought 3000 shares to cover this Call. On Friday, Expiration Day, MU closed at $22.04. The Call I sold expired and I keep the premium of $1050 and I also keep my 3000 shares of the stock. I hope to sell another Call against these shares on Monday. Below is the order form for the sale of the option and also the expiration:
Sell to Open 30 MU 1/6/17 $22.50 C @ 35¢ (+$1050)
Expired 30 MU 1/6/17 $22.50 C
Profit +$1050
This was a great opening week with a nice profit on only 2 trades. As I said above, I’ll be sending out an email on my plan for 2017 within the next few days. Please watch for that email!
Total Weekly Gain +$3050
This money is in my mattress
We are starting a new year and Main Street beats Wall Street has a few new subscribers. I would like to welcome you to the site. If you are new to Stock Options, please read all sections of this site and email me any questions you might have. I love a new year with a new plan with new readers. Let’s get to work and make some money!
Steve
The Options Coach