I sent out a trade on AK Steel a few minutes ago. While I was writing that post I entered a trade on Yelp (YELP). This YELP trade was just executed, and sticking with my policy of posting all my trades, here it is! I own 3000 shares of YELP which I bought for $28.30. YELP has been getting a lot of upgrades lately and I feel the stock will be moving. Right now the stock is at $27.95 and I sold the $29 Calls. Most of the times I want to get assigned but with this Call I hope I’m not. I think YELP will be going up a bit and I’d like to make some money on the stock. Will the stock be at $29 by Friday, my Expiration Day? We will see! If it is, and I get assigned, no big deal! I’ll keep my premium and I’ll make $.70 ($2100) on the stock. With the Call options, I just sold 30 contracts of the YELP 7/1/16 $29 Call and received a premium of $.25 ($750). This is a Covered Call on a stock I owned so I give this trade a Risk Factor of 1. This is the least risky trade! Here’s the sell order:
Sell to Order 30 YELP 7/1/16 $29 C @ $.25 (+$750)
Today the market has been up over 200 points. Right now it’s up 130. This is good for Naked Calls and Calls you don’t want to get assigned on, but we still have 4 days to expiration. I’ll be watching my trades closely!
Steve
The Options Coach