Hi all, I’m not near the market too much today and tomorrow because I’m on another motorcycle trip in Fla. Me and about 20 friends do this trip every year. It’s a ride from Ft. Lauderdale to Key West. It’s a memorial ride for one of our friends who lost his life in a motorcycle accident 10 years ago. Right now I’m staying at a hotel in Ft Lauderdale and we leave on the ride in the morning. I’ll be back to Lauderdale on Sunday and back home Monday evening.<\/p>\n
I’m watching my positions on my phone and just came up to my room to make a trade. Being involved in Naked Calls is not the safest thing when you’re not at the computer.<\/p>\n
If you look at my post from 4\/19 you will see I sold 50 Naked contracts of AK Steel (AKS). When I sold those Calls the stock was at $5 and I sold the Calls with the $5 Strike Price, an At-the-Money Call. This was a Naked Call so I gave it a Risk Factor<\/strong> of 5. This is a high risk trade! With the steel stock moving up for the last few months I felt they were about to come down. All week the stock was above $5 which put my Call In-the-Money. This had me a little concerned. Today the stock was moving above and below my Strike Price so when it was at $4.95 I decided to buy the 5000 shares and cover my Naked Calls. Now that I have a Covered Call I change the Risk Factor<\/strong> to 1. I still think the steel companies will have a pull back but now I hope that won’t start until Monday. I would like AKS to stay above $5 so I get assigned. If this happens I make $.05 on the stock sale ($250) and the $1000 premium for a total gain of $1250. If the stock stays below $5 and I don’t get assigned I’ll sell another Call.<\/p>\n I am still in the Naked position with U.S. Steel and it looks like it’s not going to work out so great. I have a $17 Naked Call expiring tomorrow and the stock’s at $19.70. This is not good! I will defiantly be doing a Roll Out<\/strong> move tomorrow. For you Grasshoppers who don’t know what that is, I’ll do my best to explain it when I make the trade. I did not complete my page on Roll Outs yet and will also try to get that done as soon as I get home.<\/p>\n <\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Hi all, I’m not near the market too much today and tomorrow because I’m on another motorcycle trip in Fla. Me and about 20 friends do this trip every year. It’s a ride from Ft. Lauderdale to Key West. It’s a memorial ride for one of our friends who lost his life in a motorcycle […]<\/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-1501","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-od","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1501","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=1501"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1501\/revisions"}],"predecessor-version":[{"id":1502,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1501\/revisions\/1502"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}