I just got off the phone with an old friend of mine. And yes we were talking options! Before he called me, I put in an order to sell a Put on GPRO. As we were talking my order was executed. I already have 50 contracts of the $15 Calls sold that don’t expire until January. I’m always thinking about covering these Calls but didn’t have the opportunity I was happy with. Last week I sold a $14.50 Put which expired and today I sold another. Today I sold 50 contracts of the GPRO $14 Put that will expire next Friday. This Put brought in a premium of $17 for a total of $850. If I have these 5000 shares put to me I think $14 will be a nice price. Even if the stock goes down lower, I think GPRO will have a good fall season because they have a lot of new products coming out and Christmas will be coming. I give this trade a Risk Factor of 1. I have a 50 contract Naked Call and if the stock is put to me I’ll have a Covered Call. Here’s the sell order:
Sell to Open 50 GPRO 9/2/16 $14 P @ $.17 (+$850)
Steve
The Options Coach
PS: U.S. Steel just dropped below the $20 mark. It now looks like the 10,000 shares can be put to me. It’s crazy how fast the market changes. I’d rather not buy the stock at this point, but it’s not a big deal. I have the a 100 contracts Naked Call on X, so it would become a Covered Call.