I did a Covered Call with U.S.Steel (X) earlier today. I bought 5000 shares of the stock at $19.30, and when the stock went up I sold a $20 Call expiring today. You can read about the trade in an earlier email or take a look at the blog section of Main Street beats Wall Street.
The stock went above my Strike Price of $20 and I was hoping to get assigned at the close today. A little while ago the stock was hanging around the $20 mark and I decided to sell the 5000 shares to lock in the $.70 profit on 5000 shares ($3500). It was nice locking in the profit but it left me Naked on the 50 contract Call expiring today. As I write, the stock is at $19.85 and we have an hour to the close. Now I hope the stock stays below $20 and my Call will expire. If this happens I will also keep the $1000 premium I received for the Call. I will be watching closely until the close. Here’s the stock sell order:
Sell 5000 shares X @ $20.00
Profit +$3500
If U.S. Steel stays below $20 it will be one of my best 1 day trades I ever made. Watch along with me to see what happens.
Take a look at the page All Trade Confirmations to see this sell order.
Steve
The Options Coach