It’s late Saturday night going into Sunday morning. Yesterday going into the close I got out of my U.S. Steel (X) positions. This entire explanation will be in my week ending report still to come. Since I got out of my X positions at a significant loss it’s time to lick my wounds and get on the road to recovery. I was going to do a Roll-Out but after surveying the situation and seeing how long it would take to recover the loss, I decided capitulation was the way to go. I will realize the loss and get back to my winning ways with this loss on my books. I’ve been having such a great year maybe the loss will help a little at tax time.
My free time has been so scarce these days. This is why I’m writing at this time of day. I’m back coaching basketball which is taking a lot of time. Practice every day which is normally right after the close of the market. Plus running my business, Fiore’s Pizza and this week getting ready for Thanksgiving. I have 18 people coming to my house. I love having big parties at my house because it forces me to get some work done lol. I’m still cleaning up from my Octoberfest where I had over 100 people.
Friday, a little before the close I cleaned up the mess with X and sold another Call to start the recovery. After the close I had to run to basketball practice, then to Fiore’s Pizza. Saturday (today) busy all day again. I am just getting the time to report the Call I sold on X. Better late than never! A little before the close I sold 50 X 11/25/16 $29.50 Naked Calls and brought in a premium of $.45 for a total of $2250. Since I no longer have a stock position with X this is a Naked Call. X is a very hot stock and this Call is only $1 Out-of-the-Money so I give this trade a Risk Factor of 5. Here’s the order:
Sell to Open 50 X 11/24/16 $29.50 C @ $.45 (+$2250)
I will be watching this 1 week Call very closely. I have a feeling the stock can have a little pull back because it’s been so hot. However, I won’t count on it so I’ll watch closely and cover my Call if necessary.
Steve
The Options Coach