Yesterday I sold a 50 contract Call against shares of Yelp I own. I sold the 12/2/16 $39 Call and brought in $.40 ($2000). When I sold the Call the stock was at $38.55. I really didn’t want the stock to get to the Strike Price of $39 because I bought the stock in October for $40.86. If the stock went above my Strike Price and I was assigned I would have lost money on the stock sale. Watching Yelp I didn’t feel it would reach that price by this Friday. But you never know! Yesterday, as soon as I sold the Call the stock started moving down and I actually thought I was going to be able to get out in a few hours. That didn’t happen yesterday but with the stock down today I put in an offer to “Buy to Close” at $.15. A few minutes ago I was executed on that order. I brought in $2000 on the sale and I paid $750 to get out for a profit of $1250. It feels good to get back to some normalcy and get some money into my mattress. Here’s the sell and buy orders:
Sell to Open 50 YELP 12/2/16 $39 C @ $.40 (+$2000)
Buy to Close 50 YELP 12/2/16 $39 C @ $.15 (-$750)
Profit $1250
Any questions, send me an email.
Steve
The Options Coach