I’m sitting on my balcony in Jaco watching the waves roll with one eye on the market. Yesterday I sold a 50 contract Call on U.S. Steel (X) which was a $39 Call expiring today. With that Call I put on a “Buy Stop” order to buy 5000 shares at $38.50 to cover my Call just in case the stock went up. The stock never hit my buy price and today X is down so that Call looks good to expire today. With the stock down today I just sold another 50 contract Call. This is a $37.50 Call expiring today. I received a premium of $.23 for $1150. All the steel companies are down today and I hope they continue down. If that happens I’ll keep yesterday’s premium of $3000 and today’s of $1150. Trying to get my trip paid for while I’m relaxing lol. I’ll give this trade a Risk Factor of 2. I’m just sitting watching the ocean, keeping an eye on the market. This is a Naked Call but if X starts up I’ll be here to cover my Call. If I take a walk on the beach I’ll enter a “Buy Stop” order at $37.40 and it expires today, meaning I don’t have to hold it over night where it could jump up and I wouldn’t be able to do anything. I think I’m pretty safe. Here’s the order:
Sell to Open 50 X 12/9/16 $37.50 C @ $.23 (+$1150)
It’s only 9:05 here in Costa. We’re 1 hour earlier. The market opens at 8:30.
Steve
The Options Coach