I hope everyone enjoyed Christmas or continues to enjoy Hanukkah! Today is the first day the market is open after Christmas and we are in the last week of 2016. Last week I sold a 100 contract Naked Call on U. S. Steel (X) which became a Covered Call when I bought 10,000 shares on Thursday. The stock was approaching my Strike Price of $36 so I played it safe and bought the shares at $35.73. The stock closed on Friday at $35.78 so my Call expired. With the expiration I keep the $4500 premium and I keep the shares of the stock. This morning the stock opened up and I sold another Call. With the stock at $36.20 I sold 100 contracts of the X $36.50 Calls and received a premium of $.70 for a total of $7000. This Call will expire this Friday (4 days). This can be a nice year ending trade! This is a Covered Call on previously owned stock so I give this trade a Risk Factor of 1. Here’s the order for the trade:
Sell to Open 100 X 12/30/16 $36.50 C @ $.70 (+$7000)
We have a few new members getting my trade emails. Make sure you understand the order form. Go to this link and it’s explained, Option Order Form.
If you want to see last week’s trade with X, go to my Trade History 2016 and scroll to the last trade.
Continue to enjoy the holidays!
If you have any questions send me an email.
Steve
The Options Coach