The readers of my earlier post know I reported the sale of a 50 contract 3/24/17 $8.50 Naked Calls on AK Steel (AKS). When I sold the Call the stock was at $8.52. The stock came down a little and I decided to cover the Naked Option. I just bought 5000 Shares of AKS at $8.38. Now I would like the stock to go up above $8.50, my Strike Price, and I get assigned. This Call expires next Friday. If I get assigned I’ll keep the $1250 premium plus I’d make 12¢ on the sale of the stock, which on 5000 shares is $600. If I get assigned the total gain would be $1850 which would be a 4.4% Rate of Return in one week. I gave the sale of the Call a Risk Factor 5, but now that it’s a Covered Call I change the Risk Factor to a 1. Here’s the stock buy order:
Buy 5000 Shares AKS @ $8.38
Steve
The Options Coach