{"id":1460,"date":"2016-04-11T10:59:34","date_gmt":"2016-04-11T14:59:34","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=1460"},"modified":"2016-04-11T10:59:34","modified_gmt":"2016-04-11T14:59:34","slug":"more-u-s-steel-calls","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=1460","title":{"rendered":"More U.S. Steel Calls"},"content":{"rendered":"

\"Screen<\/a><\/p>\n

I own 5000 shares of U.S. Steel (X) which I bought at $16.85. For the last few weeks I’ve been selling Calls against these shares and bringing in a nice amount of premiums. At the opening today I owned the 5000 shares and I had a Call sold on these shares as of last Wednesday, April 6th. This Call expires this coming Friday. It’s an $18 Call.<\/p>\n

Now we have earnings season upon us. I do not like owning positions while a company is reporting earnings, let alone large positions! Well, X reports earnings on Tuesday, April 26th and I would like to be out of all X positions by this time. This morning I sold an additional Call on X, a Naked Call. I sold 50 contracts of the 4\/22\/16 $17 Calls and received $.80 for a total of $4000. Here’s the sell order and below I’ll explain why I sold this Call.<\/p>\n

Sell to Open 50 4\/11\/16 $17 C @ $.80 (+$4000)<\/h4>\n

<\/h4>\n

Why did I sell these Calls? As you know I own the stock at $16.85 and sold a Covered Call with the $18 Strike Price expiring this Friday. Even though X has been moving nicely, I don’t think it will hit $18 before this Friday. If it does not hit $18, at that point I will own 5000 shares of X \u00a0as a lone position because the Calls will expire. This is what I feel is going to happen. Today I decided to sell a $17 Call for the following Friday which is the 22nd of April, 4 days before earnings. I believe by the 22nd X has a good chance to be above the price of $17. If I am right, I will get assigned and be out of all X positions with a real nice profit going into earnings. I went with the lower Strike Price of $17 because I want to get assigned. I got a very good premium and if I get assigned I’ll make an additional $.15 on the stock sale. If it happens like this I will be a very happy man. If the stock takes a big dip before the $17 Expiration Date, at least I get to keep a real nice premium of $4000.<\/p>\n

This week I’ll have to watch the price of X. If it gets up to the $18 area I’ll have to buy another 1000 shares, because if I’m assigned on my Covered Call this coming Friday I must have my $17 Call covered for the the following Friday April 22nd. I really don’t want to get assigned this coming Friday! This would be the big monkey wrench in my plan.<\/p>\n

As I write this post the price of X is up on a market up day. It’s at $17.15. I will watch is closely all week. I give this Naked Call a Risk Factor of 3. It is a Naked Call, but I have some breathing room before the stock approaches my Strike Price of $18 on my Covered Call.<\/p>\n

\n

Please email me if you have any questions on this move. It will all be over in 2 weeks and I want this $4000 premium on todays Naked Call!<\/p>\n

\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

I own 5000 shares of U.S. Steel (X) which I bought at $16.85. For the last few weeks I’ve been selling Calls against these shares and bringing in a nice amount of premiums. At the opening today I owned the 5000 shares and I had a Call sold on these shares as of last Wednesday, […]<\/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-1460","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-ny","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1460","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=1460"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1460\/revisions"}],"predecessor-version":[{"id":1461,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1460\/revisions\/1461"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}