Out of My U.S. Steel “Insurance” Call

I sold a U.S. Steel (X) 50 contract 3/10/17 Naked Call on Tuesday for insurance on my 50 contract Covered Call. See “Sold More U.S. Steel Calls for Insurance.”This Call gave me a premium of 70¢ for a total premium of $3500. I only had the position 2 days. Today X is down a little and the premium for my Call was down to 35¢. If I can get out of a position that I’ve been in a day or 2, with half my premium I signed up for, I like to exit to end the contract. When the premium was at 35¢ I put in a “Buy to Close” order at 30¢. A few minutes ago I was executed on that order. I brought in 70¢ ($3500) and I paid 30¢ ($1500) to buy my way out of the contract for a total profit of $2000. I love deals like this! Not bad for 2 days. Here’s the “Sell to Open” and “Buy to Close” orders:

Sell to Open 50 X 3/10/17 $42.50 C @ 70¢ (+$3500)

Buy to Close 50 X 3/10/17 $42.50 C @ 30¢ (-$1500)

Profit +$2000

If you look at my “2017 Challenge,” my weekly goal is to make $3000 a week. Tomorrow is Friday, Expiration Day. I am on schedule to make the $3000, and then some! I really try to make the $3000 but I also try to stop after I have it made, plus a little more to cover my expenses. It’s trades like this one today that brings my weekly profit above what I’trying to do. This trade I entered to go toward next weeks goal but since I had an early exit it will be on this week’s profit.

Some people think I nuts to try to limit myself at $3000 plus a little more for expenses, but I feel 3 grand a week is plenty and if I keep pushing for more, greed sets in. My plan is $3000+, and I try to stick to my plan. It’s very important to have a plan with goals and stick to it! Take a look at “My Philosophy & Strategy” page.

We had a bunch of new subscribers join the Main Street beats Wall Street family this week. I would like to welcome you and wish you luck. The truth is, you will give yourself luck by studying. There’s a lot of money to make but you must put in the time. I’m here for you if you have any questions. This site and my advice will always be FREE! I thrive on you!

Steve

The Options Coach