U.S. Steel (X) was upgraded today by Citibank from sell to neutral. I’m not looking to own X right now but I thought it was a good opportunity for a “Buy-Write” with the Call being very close to an At-the-money Call. I bought 1000 shares at $39.37 and sold 10 contracts of the X 1/26/18 $39.50 Calls. This Call brought me in a premium of 75¢ for $750. I’m hoping to get assigned. If I do I’ll make another 13¢ on the stock sale for $130.
U.S. Steel Buy-Write
Buy 1000 Shares X @ $39.37
Sell 10 X 1/26/18 $39.50 C @ 75¢ (+$750)
Steve
The Options Coach