I Just bought another 200 shares of U.S. Steel at $23.82 and sold a 1 day Call for a 2% premium.
I own 400 shares of X. All the steel stocks are down big today. I’m not a big fan of averaging down with the buying of more shares of a falling stock. But after looking at the candlestick chart I see that with X dropped today it came down to the lower band of the Bollinger Bands. When it hit the lower band it bounced off and moved a little higher. This tells me that the stock might have hit support. If I’m right the stock will move up from here.
I bought 200 shares at $23.82 and sold a 2 contract Call to expire tomorrow. This Call gave me a premium of 50¢ which is 2% of my $23.82 investment for a 1 day trade.
Buy 200 Shares X @ $23.82
Sell to Open 2 X 6/18/21 $24.00 C @ 50¢ (+$100)
If I don’t get assigned I’ll keep the stock to sell another Call next week.
Successful trading,
Steve
The Options Coach