I think we can all agree that Tuesday (Election Day) was a long, drawn out, nerve racking day. I don’t think it’s a secret how I felt about our candidates, pre-election. There was no way I was going to vote to continue Obama’s policies! Especially with a candidate as corrupt as HRC. I am also no fan of Donald Trump. I agreed with the argument that he was way too insulting and “thin skinned” to be President of this great land. And his narcissism did not help my dismal opinion of him and whether I felt he had the temperament to lead this country or not. I had serious questions to whether he was a legitimate candidate or not. What I did like was the way he felt about the media, corruption in Washington, trade, immigration, the military, Obamacare, regulations, Kate’s Law, the wall, Congressional term limits, his view of where the U.S. should stand in the world, the democrats using the African American vote and doing nothing to help their cause, the list goes on. Can he solve all these issues? Probably not but it’s nice to be optimistic. He heard the voices of the silent majority and tapped into their hopes and fears. The type of President he’ll be is still to be seen. All we can do is rally around him and hope he didn’t con us. I must say I feel an excitement about our future.
As for Hillary’s demise, I do not have a “good riddance” attitude. Not that I have second thoughts about her and Bill’s policies and morals. I feel bad for the women and young girls who wanted to see a woman President in their life time. I’m talking about strong women who truly believed in the democratic policies who didn’t see her as the republicans did. They loved her the same as the Trump lovers loved him, even with his flaws. We all think differently! This was a very hard fought, passionate election, it’s time to heal.
My opinion of the anti-American protesters is not good. I call them anti-American because they are! They burn the flag, disrupt the lives of hard working people, cause problems for our law enforcement, etc. Protesting the results of an election in our very fair democracy because they don’t like the result. These whining, spoiled brats should pack up and move with the few Hollywood celebrities to a place where they all think the same. Bring Bernie and enjoy Socialism.
How did I play the election? Well from time to time I do some day trading. I don’t recommend it but I do it. I do it with stock I’m holding to try to capture some profit while I’m at my computer watching my candlestick charts and my moving average lines. At the end of the day I always end up owning the same stock. Many times I don’t even log my trades in Main Street beats Wall Street because I don’t want to complicate things for the Grasshopper readers. Plus I’m back coaching High school basketball, along with my pizza business, time is tight to explain everything.
As election day was getting closer I was getting very nervous about the outcome and my holdings. The day before the election I decided to sell all my stock until after the results. As it turned out I was able to get back into all my stock at a lower price which worked out nicely. All my stock except one, U.S. Steel. When the market was diving on Wednesday, U.S. Steel was up big because of Trump announcing his plan to immediately start work on the infrastructure. This caused a major problem for me because with the sale of all my stock it left me with a 100 contract Naked Call on U.S. Steel. The stock was up over $3. I’m not going to sugarcoat this, my account was down about $28,000. Now I have to deal with this big problem. The Call doesn’t expire until next Friday the 18th and I’ll keep you informed with the development. I’m hoping U.S. Steel falls like a rock. With the temporary sale of the stock I didn’t lose money because the price of the stock was a little above my purchase price. The problem is the Naked Call. When the stock goes up so does the value of the premium. This is a Short Call. Being short means, when the value of the premium goes up my account goes down.
If you have any questions on this please send me an email. This is very important to understand. The way it looks now I’ll probably have to do a Roll-Out next week to prevent me from having to delivery the stock at my Strike Price of $20. As I write the price of U.S. Steel is $24.50. NOT GOOD!
Steve
The Options Coach