Today is Saturday March 4th. I’m in Greenwich Village, NYC hanging at my pizza joint, Fiore’s Pizza. If you don’t know about Fiore’s Pizza or my friend Mike Fiore, please read my page About Me, I talk about them a little there. I knew I’d be here for a while so I brought my lap Top so I could get a little work done.
This was another great week for me. At the moment I only hold 2 stocks and that’s the way I like it. I really would like to get assigned at the end of every week but sometimes things don’t work exactly the way you like. I’m holding 5000 shares of U.S. Steel (X) and 1000 shares of Dick’s Sporting Goods (DKS). I’m a little concerned with the X position, but not as concerned as I was 6 weeks ago when I had 10,000 shares. You never know when a stock is gonna take a big dip and tie up your money for a while. X is down about $3 from where I bought, hopefully I get a little bounce this week.
This week I had 3 trades come to a conclusion, 2 with X and 1 with RH. The first X trade I sold a Call to expire next week but with the stock moving down I was able to jump out this week with a nice 2 day profit. The post getting into this trade is “Sold More U.S. Steel for Insurance.” from Feb 28th. The trade getting out was on March 2nd and the post was “Out of My U.S. Steel Insurance Call.” 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)
2 Day Profit +$2000
My next trade involved RH. If every trade worked as well as this one I’d be very rich. I was watching the stock and when I thought it had peaked I sold a 30 contract Naked Call. As soon as I was executed on the sale the stock started moving down and never returned up from where I sold the Call, never mind getting anywhere near my Strike Price. I sold the Call on Monday the 27th and it expired worthless Friday, Expiration Day. The buyer of this Call never had a chance! My advice is don’t buy Calls! 80% expire worthless. The seller makes the money! The post getting into this trade is “RH Naked Calls Sold.” Here’s the order:
Sell to Open 30 RH 3/3/17 $33.50 C @ 35¢ (+$1050)
Expired 30 RH 3/3/17 $33.50 C
Profit +$1050
For my last trade, I sold 50 contracts of X on Tuesday morning. This option also expired because the price of X never hit my Strike Price. The post entering this trade was called “Sold 50 Contracts of U.S. Steel.” This trade had a very nice premium for a 1 week trade, 65¢ on 50 contracts (5000 shares) for $3250. Here’s the order:
Sell to Open 50 X 3/3/17 $40.50 C @ 65¢ (+$3250)
Expired 50 X 3/3/17 $40.50 C
Profit +$3250
As you know I’m going for $3000 a week, as in my “2017 Challenge.” It’s the first trade I went over that lifted me to a very nice weekly gain. It wasn’t because of greed. In fact it was because of a lack of greed. This trade was to expire next week. I bought myself out with a nice profit because the stock went down. I could have held another week and keep the entire $3500 but I decided to get out with $2000. Because I got out, the profit went on this week’s total. If I held on to expiration this week’s total would have been $4300. Since I got out, the total for this week went up to $6300. Fantastic!
Total Weekly Gain $6300
Welcome all the new readers! We are over 100. If I can help one of you get this shit stuff down and be successful making money, it’s worth my time and I’m happy! Good luck with your studying, send me an email if you need help, and let’s beat the hell out of Wall Street! I’m gonna go have a slice of great NYC pizza. Have a great weekend!
Steve
The Options Coach