I started today early! I really didn’t want to make any more trades this week. I started the week off nicely yesterday with a $3000 gain on the sale of my U.S. Steel (X) stock, plus I have two options working involving a Call on Yelp and a Put on GoPro. The week was shaping up to be a good one so I figured why get greedy? I had a little change of heart when X took a little dip at the open. I still have the 100 contract of X Naked Calls expiring in January so I decided to sell another Put. If I am put the stock again like last week, I’ll have a Covered Call and not a Naked Call. A Covered Call is always a low risk position to be in. With the stock at $20, I sold 100 contracts of the $19.50 Put that will expire this Friday. Yes 4 days! I liked the Put I sold last week and I like this one better. Last week I had a Strike Price of $20 and today I have a Strike of $19.50. My big hope is that X doesn’t take a big drop before this Friday. With the market in a very narrow trading range lately, I hope X hangs right where it is now. This trade is the sale of a Put on a stock I already have a Naked Call on, so I give it a Risk Factor of 1. Here’s the Put option order:
Sell 100 X 9/2/16 $19.50 P @ $.25 (+$2500)
If all goes well, I’m hoping this will be the last trade I make this week. It’s shaping up to be another nice week. Keep your fingers crossed!
As always, email me any questions.
Steve
The Options Coach