This morning a report came out on Under Armour (UA). Morgan Stanley downgraded the company to “underweight.” With that I sold 10 contracts of the 1\/15\/16 $70 Naked Calls. At the time the stock was down over 8%. Right now the stock is down 9.15% and the premium went way down. I just bought my way out of the Call. Here’s the order”<\/p>\n
I sold my Call for $1.10 for the premium of $1100 and I bought back for $.70, for a premium of $700. I sold for $1100 and bought for $700. the total profit is $400. This took 2 hours. I could have held this Call until expiration and try to keep the entire premium of $1100 but Naked Calls are dangerous. If I can get out making a nice profit, I do. You never know what the market going to do. My strategy is take the money and run. Next deal! \u00a0You must read the page “Long & Short Positions” if you don’t understand how this works. This deal is over!<\/p>\n
“Money in the Mattress”<\/p>\n
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While \u00a0I was writing the above report on the UA deal, NFLX dropped a little. I stopped writing to look what the premium of the $119 Call I sold earlier. I sold 5 contracts on stock I previously owned. I received a premium of $2 on the 500 shares for $500. I just did this 3 hours ago. When I looked the premium was $.70 so I put an order in to buy back the call. I figured, If I can grab a profit maybe the stock will go back up and I’ll sell the Call again; if not today, maybe tomorrow. Here’s the order:<\/p>\n
My Call was executed and I’m out of that Call for the $.70. I sold for $2 and I’m out for $.70. This is a profit of $1.30. On the 500 shares the total profit is $650 in 3 hours. This deal is over!<\/p>\n
“Money in the Mattress”<\/p>\n
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You must understand, I not \u00a0day trader! It’s just working out that way because of the volatility of the stock I’m in today.<\/p>\n
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<\/p>\n
Steve<\/p>\n
The Options Coach<\/em><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" This morning a report came out on Under Armour (UA). Morgan Stanley downgraded the company to “underweight.” With that I sold 10 contracts of the 1\/15\/16 $70 Naked Calls. At the time the stock was down over 8%. Right now the stock is down 9.15% and the premium went way down. I just bought my […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-1021","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-gt","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"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=1021"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1021\/revisions"}],"predecessor-version":[{"id":1042,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1021\/revisions\/1042"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}