This is going to be a slow week. Most of the stocks I follow closely are reporting earnings this week so I’ll stay away. I don’t like to get into positions with stock with news imminent. U.S. Steel, AK Steel, Facebook and GoPro all reporting this week. YELP doesn’t report until the first week in August so I just sold a Call. I sold 50 contracts of the YELP 7/29/16 $30.50 Naked Calls. The premium was $.35 for a total of $1750. The stock is in the area of $30.25 which is only $.25 Out-of-the-Money on a Naked Call so I give this trade a Risk Factor of 4. I will be watching it closely. Here’s the order:
Sell to Open 50 YELP 7/29/16 $30.50 C @ $.35 (+$1750)
Check out my Message of the Day. Let me know what you think.
Steve
The Options Coach