I would like to welcome the new readers. We had a bunch join us in the last 2 weeks. It’s very important to read all sections of Main Street beats Wall Street. It’s also very important to read all material you can get your hands on. You are interested in a very dangerous game and if not educated and disciplined you can lose ALL of your account. If done correctly, with your education and discipline behind you, options trading can change your life. Slow and steady, steady and slow, the tortoise wins the race! If you haven’t already read my “2017 Challenge” please do so. Also read this interesting post I made this week. The post is called “Take a look at this.”
I had another great week. For you readers who have been reading from the beginning, over a year now, You probably noticed I’m making less trades per week, since the beginning of the new year. I’m sticking to my “2017 Challenge” and trying to make $3000 a week. Most weeks I’m doing much more but it’s not from overextending my margin or taking on a lot more risk. With my “2017 Challenge” I’m limiting my trades, running my account like a business and cutting down on my expenses. And of course, I’m cutting down on my greed. In this game greed will get you! The expenses I’m cutting down on are my commission fees and my margin interest. So far I’m loving my results. Check out my weekly results at Trade History 2017.
This week I only had 2 trades that came to a conclusion, both involving U.S. Steel (X). As you probably noticed, I like to deal with very few stocks. I have a bunch on my watch list, and can go to them at any time but I really like to watch a few very closely. I feel I learn how a stock is going to move in certain situations. Take a look at my Trade History 2017, you’ll see most of my trades are with X. At the end of this week the stock came down a little more than was comfortable for me. This is why when I had 10,000 shares I didn’t feel safe. Now that I only have 5000, I don’t like when the stock goes down but I like it better than when I had 10,000. My account and stomach handles it better lol.
With the stock going down, it never got to my Strike Prices on the 2 Calls so they both expires worthless and I keep the entire premium. Here’s the 2 “Sell to Open” orders and the expiration orders. I included the links to the post when I made the trades.
Sell to Open 50 X 2/24/17 $40.50 C @ 65¢ (+$3250)
Expired 50 X 2/24/17 $40.50 C
Profit +$3250
Executed on a $40.50 Short Call
&
Sell to Open 30 X 2/24/17 $42 C @ 50¢ (+$1500)
Expired 30 X 2/24/17 $42 C
Profit +$1500
30 U.S. Steel Calls Sold Expiring This Week
The new year in moving along nicely. As you know I really don’t like owning stock. This week I was naked on the 2 Call above but at one point the stock moved above my Strike Price which had me a little concerned. When it came down and I got the opportunity to cover my 50 contract, $40.50 Call I did. Now I wish I didn’t because the stock came way down and now I have to see if it comes back up to sell more Calls this coming week. I’m in the stock at $40.30, it closed at $37.01. If it doesn’t come up a little I’ll hold and watch for a while. I still have plenty of margin so I’ll still be able to make my trades to shoot for my goal of $3000 for the week. Watch closely and see how I do.
Have a great weekend!
Steve
The Options Coach