In sticking with my “2017 Challenge” I just sold another Call on U.S. Steel (X). If you read my “2017 Challenge” you’ll see my goal is to bring in $3000 a week for the entire year of 2017. On Friday of last week I sold a 50 contract Call to start this week’s goal. That premium was $3250. Read the post “Executed on a $40.50 Short Call.” That Call’s premium, more than satisfies my weekly goal. However, in my “2017 Challenge” I also say I will try to bring in a little extra if I don’t assume extra risk. I did assume a little extra risk with this trade, but any trade will give some risk. This one I’m not worried about. I sold a $42 Naked Call with the stock at $4, and received a premium of 50¢ for $1500. With my earlier premium of $3250, plus this $1500 puts me well above my $3000 goal, plus expenses. The week is going well! This trade is a Naked Call but $1 Out-of-the-Money and I’m watching closely, so it gets a Risk Factor 3. Here’s the order:
Sell to Open 30 X 2/24/17 $42 C @ 50¢ (+$1500)
The reason I like this Call is the stock is up over $1 today and my Call is another dollar Out-of-the-Money. I will be watching it very closely, but that would be a huge move on the week. The stock has been moving up and down! But anything can happen with the way the stock has been moving. I have plenty of time to cover this Call.
As I’m writing X is at $41.10! Watching very closely! I really don’t want to cover the Call because I don’t want to buy the stock. I feel it will come back down, but if it gets much higher I’ll have to buy the 3000 shares.
Steve
The Options Coach