I normally title the week ending post with the word “Results Week Ending…..” but this week I titled my post “Report Week Ending…..” The reason for this is I have no results for the week ending 5/20/16. I entered 2 trades this week but I did not exit any to give a result.
As you have been reading in my past post, this is May! I really don’t like the way the market is moving and I’m not going to force a trade just for the blog. I think it would serve you better if I show discipline. Many stocks have been moving down and I don’t like the premiums. I’m going to sit and wait. But continue to look at “Main Street beats Wall Street” everyday. I’ll try to write some lessons or I might even make some Paper Trades for learning purposes. Let’s see what this week brings.
I am holding a few stocks and looking for nice premiums before I sell Calls on them. Below is a list of my holdings.
2000 shares GPRO
I’ve been holding 2000 shares on GPRO and have been selling Calls. At the moment I’m looking for a decent premium but there hasn’t been any. The stock has been falling and if there’s no volatility the premiums will be low. Volatility is caused when a stock moves up and down and GPRO has only been moving down. I’m going to have to sit and wait!
2000 shares FB
I’m holding 2000 shares of Facebook. I have 1000 at $113 and 1000 at $119.90. I have also been selling Calls on these shares and looking for a nice premium, hopefully tomorrow. I could sell the shares now and make a profit but I like FB and I’m looking to sell the $120 Calls. Let’s see what happens tomorrow.
5000 shares U.S. Steel
I own 5000 shares of X and this week I sold a Call. I sold 50 contracts of the 7/15/16 $15 Calls. I brought in a premium of $4500. I have about 7 weeks until expiration. This is a Covered Call. If the stock doesn’t get to the Strike Price of $15 I’ll keep the stock and keep the $4500 premium. I’ll be watching closely.
10 Naked Calls on YELP
This week on Thursday I noticed a “Raising Wedge” pattern on the YELP candlestick chart. If you want to read a little about a Raising Wedge hit the link. I have an explanation using U.S. Steel. I feel YELP is going down. Only time will tell. With the stock at $24.74 I sold the $25.50 Naked Call expiring this coming Friday. I will also watch this closely this week. If the stock goes up against my prediction, I’ll make a decision to cover or not.
It’s early but right now the futures for the Monday opening are flat.
Any questions, please send me an email.
Steve
The Options Coach