Murphy’s Law, did you ever hear of it? Well, I think it’s such a part of option trading I included the term in my Stocks/Options Glossary. It means, what can go wrong, will go wrong! I mention many times in Main Street beats Wall Street that things will not always go your way. You will have times when everything goes wrong. While driving on the highway to success you will hit many curves, hills and potholes. This doesn’t mean only you, it also means me. You must learn to negotiate the road and take some detours. This game can be very rewarding but you better have the tolerance and a strong stomach to weather some storms. Well right now, after having a few greats months, I’m on a bad part of my highway. This is really a great time for the readers to follow how my trades are not going well and what I do to get myself off this bad part of my road to success.
At the moment, the positions I own that I want to go up, are going down. The positions I want to go down, are going up. This should be an interesting week! A week for me to try to save some of my gains. And a week for you to learn that things don’t always go great, even if you’re a long time trader.
The positions I’m very concerned about are my RH and my U.S. Steel. Last week I had my RH position go against me and I had to do a Roll-out. This position now has an expiration date of 8/18/17. I need this stock to come down a bit so the premium of my Naked Call experiences some decay.
This week I sold a Call on my 8000 shares of U.S. Steel and it moved up more than I wanted. It closed about 90¢ above my Strike Price and instead of losing my stock I decided to do another Roll-out. I’m hoping the stock get below $33 this week so I’ll get to keep the premium of the Rolled-out option. The option I rolled-out was to expire this past Friday would have brought in a premium of $3040. This would have satisfied my weekly goal of $3000 in my “2017 Challenge.” I guess it wasn’t meant to be. As a result of my Roll-out I did not have any trades end this week. This is the first week of the year with no profit. O Well, let’s see what this week brings. Keep the faith!
Steve
The Options Coach