On 1\/25\/21 I bought 100 shares of U S Steel and sold a 1 contract Covered Call. I sold 1 Call bringing in a premium of $1.15 for $115.<\/p>\n
After I sold that Call the stock pulled back a few dollars and I didn’t get assigned. The Call expired last Friday, 1\/29. This past week I didn’t get a Call sold against these shares because with the stock down I couldn’t get a good premium.<\/p>\n
Today I decided to buy another 100 shares at $16.90 leaving me with 200 shares at an average price of $17.90.<\/p>\n
Today, with a few minutes left in the trading day I sold a 2 contract Call. To get a premium I liked I had to go out to the Expiration Date of 2\/19 and use the Strike Price of $17.50. I sold 2 2\/19\/21 $17.50 Calls at 60\u00a2 for $120.<\/p>\n
Sell to Open 2 X 2\/19\/21 $17.50 C @ 60\u00a2 (+$120)<\/strong><\/p>\n As Grasshoppers, as you were reading this report did you notice what makes this trade different to most other Covered Call trades I make?<\/p>\n What makes this different is this is an In-the-Money Covered Call. I own the stock at $17.90 and I sold the $17.50 Call. If I get assigned I’ll lose money on the sale of the stock. If assigned at $17.50 I’ll lose 40\u00a2 on the 200 shares for a loss of $80.<\/p>\n I did this for a few reasons. One of the reasons is I wanted to use this as a learning tool for you. I don’t know if any of you were in the original trade, but I want to go over the option you have when you’re not assigned and the stock drops lower. I’m reporting this after the close because I wanted anyone in the original trade to think about what I did and you can do what you want tomorrow.<\/p>\n Another reason I made this In-the-Money trade is for the bigger premium. I might get assigned and lose money on the stock sale but the bigger premium makes up for the loss. Plus I brought in a $1.15 premium 2 weeks ago. Even if I get assigned and lose money on the stock sale I will still be up. I’ll lose $80 on the deal but I brought in a total of $235. I will be +$155.<\/p>\n If you don’t like this you can buy another 100 shares to lower your average cost and sell the $18 Call. If assigned you will not lose money on the stock but you’ll take in less premiums.<\/p>\n These are the decisions you have to make when the trade doesn’t go the way you want. If I’m not assigned and the stock drops, it’s not going the way I want.<\/p>\n If you have any questions on this send me an email.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" On 1\/25\/21 I bought 100 shares of U S Steel and sold a 1 contract Covered Call. I sold 1 Call bringing in a premium of $1.15 for $115. After I sold that Call the stock pulled back a few dollars and I didn’t get assigned. The Call expired last Friday, 1\/29. This past week […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-10469","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2IR","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10469"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10469\/revisions"}],"predecessor-version":[{"id":10473,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10469\/revisions\/10473"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}