U S Steel (X) took a nice leap today on news that the USA continues to monitor the worldwide steel dumping and put many countries on notice that their cheating will no be tolerated. X is up 7.5% ($2.20) and it looks like the steel industry can move in the coming days or weeks. I don’t have complete confidence the move will be long lived so I did an At-the-Money “Buy-Write.” I bought 1000 shares of X at $31.95 and sold 10 contracts of the 12/9/17 $32 Call for 50¢ (+$500). I’m not looking to make anything on the stock, I’m looking to keep the $500 premium and be out of this position this Friday. If I do get assigned I’ll make 5¢ on the stock for an additional $50.
U S Steel Buy-Write
Buy 1000 Shares X @ $31.95
Sell to Open 10 X 12/8/17 $32 C @ 50¢ (+$500)
I got out of RH this week with a nice profit. I didn’t want to be in the position into the earnings which were announced yesterday. The results were in-line with estimates and today the stock’s not doing much, down $1.50 as I write. I’ll be looking to get back in soon.
Steve
The Options Coach