Yesterday I did a U S Steel “Buy-Write” with an expiration date of next Friday, July 21st. A little while ago I was executed on another “Buy-Write” only this one expires tomorrow. The stock was up this morning and I had money available in my margin so I entered the one day trade. As soon as I did the stock fell about 75¢ and I was.t executed. However, I left the order in. I was just executed because some news must have come out, and the stock shot up. I was executed with the stock at $22.95 but the stock shot up to $24.10. I’m not sure what news came out but I’ll look into it as soon as I’m done with this post. This is a Covered Call so it gets a Risk Factor1. I bought 1000 shares at the $22.95 and sold the 7/14/17 $23 Call for 42¢ for a total of $420. As I write the stock fell a little to $23.70. I hope the stock stays above the $23 Strike Price and I get assigned. Here’s the “Buy-Write.”
U S Steel “Buy-Write”
Buy 1000 Shares X @ $22.95
Sell to Open 10 X 7/14/17 $23 C @ 42¢ (+$420)
You never know but this should be the last trade of the week.
Steve
The Options Coach
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