{"id":1523,"date":"2016-04-29T16:37:09","date_gmt":"2016-04-29T20:37:09","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=1523"},"modified":"2016-04-29T16:37:09","modified_gmt":"2016-04-29T20:37:09","slug":"2-trades-at-the-close","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=1523","title":{"rendered":"2 Trades at the Close"},"content":{"rendered":"

At the close, I mean with 30 seconds left in the trading day, I made 2 trades. The 1st one was a Call on my 1000 shares of Facebook (FB). This is the last trading day of April and Monday will be May 2nd. Traditionally May is not a good month for the stocks. I do not advocate making trading or investment decisions on the time of year but this week I tried to sell my FB shares at $120 and did not get executed. With the stock at $117.50 I decided to collect a premium with the Strike Price of $120. Many books call this “selling stock and getting paid for it.” Who know what Monday will bring with the “May tradition”. If FB goes down I keep my premium. If it goes above $120, I keep my premium and sell at $120, the price I was looking for earlier in the week. I sold 10 contracts of the 5\/6\/16 $120 Call for a $.60 premium. On my 1000 shares that’s $600. This is a Covered Call with a previously owned stock so I give this trade a Risk Factor<\/strong> of 1. Here’s the sell order:<\/p>\n

Sell 10 FB 5\/6\/16 $120 C @ $.60 (+$600)<\/strong><\/h4>\n

 <\/p>\n

My 2nd trade at the close involved U.S. Steel (X). Earlier in the week I sold 100 Naked Calls contracts on X with the Strike Price of $19. 100 Naked Calls represents 10,000 shares. With the stock moving above and below the $19 mark all day, a few hours ago I decided to cover half my position by buying 5000 shares when it fell down to $18.70. With an hour to the close, X was well above my $19 Strike in the $19.40 area. As we were approaching the close the stock come down to the $19.10 area. With 30 seconds left I decided to buy the other 5000 shares and I got executed at $19.11. Now I was completely covered with 10,000 shares at an average price of $18.90 (5000 shares at $18.70 and 5000 shares at $19.11). It looks like I’ll get assigned at the Strike Price of $19 so I’ll make $.10 on the stock sale of the 10,000 shares for a profit of $1000. Plus the premium I collected on the sale of the Call which is $2500. I will go over this in my week ending results. I am very happy the way this worked out.<\/p>\n

 <\/p>\n

If you have any questions on this trade and my adjustment trades please send me an email.<\/p>\n

 <\/p>\n

Have a great weekend!<\/p>\n

 <\/p>\n

Steve<\/p>\n

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

At the close, I mean with 30 seconds left in the trading day, I made 2 trades. The 1st one was a Call on my 1000 shares of Facebook (FB). This is the last trading day of April and Monday will be May 2nd. Traditionally May is not a good month for the stocks. I […]<\/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-1523","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-oz","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1523","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=1523"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1523\/revisions"}],"predecessor-version":[{"id":1524,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1523\/revisions\/1524"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}