I’ve really been laying low since the election. Just watching my positions and trying to hold onto my yearly gains until we start a new year. Last week I sold 100 contracts of the U.S. Steel $32 Calls while it was In-the-Money and today the stock finally is taking a break and is down over $1.50 as I write. I am now $1.50 Out-of-the-Money. The stock is at $30.45 and my Strike Price is $32.
Today I did sell a Call on Yelp against previously owned stock. I sold 50 contracts of the $39 Calls to expire this Friday. I received a premium of $.40 for a total premium of $2000. When I sold the Call the stock was up $.50 and as I’m writing the stock is down $.22. I might be out of this Call before the end of the day. But it’s nice having the Call as the stock goes down because it giving me a little hedging. This is a Covered Call so I give this trade a Risk Factor of 1. Here’s the order:
Sell to Open 50 YELP 12/2/16 $39 C @ $.40 (+$2000)
I just put in an order to “Buy to Close” this Yelp Call for $.20. If I get executed I’ll make a quick $1000 on this Call. If not I’ll hold it until this Friday.
Steve
The Options Coach