Hi All! 2 days ago I arrived in Costa Rica. I’ll be here for 10 days celebrating my wife’s birthday. I’m about to leave San Jose driving to Jaco Beach. Jaco Beach is a surfing town located on the Pacific Ocean side of Costa Rica. We’ll be there a few days before we go to the volcano in Arenal. There we will enjoy a few days sitting in the natural hot springs.
I’m trying to get a little (very little) trading in to help pay for the trip. This morning U.S. Steel (X) opened up again. I sold 50 contracts of the 12/9/16 (expiring tomorrow) $39 Calls. When I made the trade the stock was at $38.55. The stock has been so volatile I got a real nice premium. I received $.60 for $3000. I also placed a “Buy Stop” order for 5000 shares. When I was executed on the Call the stock started down and I was able to put the Buy Stop order in at $38.50. The stock has been below the $38.50 price so I was not executed on buying 5000 shares yet. If it get up to $38.50 I will buy the shares to cover my Call. I would like to see X stay below the buy order of $38.50 and the Call expire tomorrow as a Naked Call. Let’s watch and see. I give this trade a Risk Factor of 2 because I have the buy order in to cover the Call if the stock goes up. Here’s the sell order:
Sell to Open 50 X 12/9/16 $39 C @ $.60 (+$3000)
The internet is very slow which makes trading a little difficult. Off to Jaco!
Steve
The Options Coach