U.S. Steel is really not moving good for me lately. Watching the candlestick chart and seeing the stock go up and down, I decided to sell a 1 day Call to bring is some premium. This is an X 80 contract Call with the Strike Price of $33. I received a premium of 38¢ for $3040. This is a gamble because I might lose my stock to assignment but the way it’s moving I think I’ll be able to get back in. This is a Covered Call but I don’t want to lose my stock because the Strike Price is lower than where I bought the stock. I feel like with the stock not moving well I have to keep the premiums coming in. I give this trade a Risk Factor 3 because of the risk of losing the stock. Here’s the order:
Sell to Open 80 X 4/7/17 $33 C @ 38¢ (+$3040)
Steve
The Options Coach