It’s early Sunday and I just returned home from Boston. I love traveling and seeing other places but I love returning home to NYC. Plus the drive up 95 from NYC to Boston is not the most pleasurable one. Especially in damp cold weather.<\/p>\n
I back at my desk writing my week ending results and doing a little research for the Monday open wish is the first market day or May. I’m never happy about the market in May, It’s normally a good month. For that matter neither is June and July. But the year normally opens better than it did in 2016 so I guess anything can happen. In anticipation of a normal May I will be prepared to do Naked Calls and possibly even short some stocks. Only time will tell.<\/p>\n
I must say this year has been going fantastic for me. I had some great weeks. I did not have a great close to 2015 and the first few weeks of 2016 were rough but since than it’s been great. I’ve had some really unbelievable weekly gains. I was a little worried about this week with my 100 Naked contracts of U.S. Steel but it could not have ended better. I’m very happy!<\/p>\n
I closed 3 trades this week. 1 was with AK Steel (AKS) which was a stock sale. 2 were with U.S. Steel (X), an expiration of an option and buying 10,000 shares of the stock and having them assigned. First let’s review AKS.<\/p>\n
<\/p>\n
Last week on Thursday 4\/21 I bought 5000 shares of AKS stock to cover a 50 contract Naked Call which was expiring Friday the 23rd. I bought for $4.95 per share. The stock went down and on Friday I never got assigned. The week ended with my option expiring but come Monday I was still holding the 5000 shares. No big deal but after AKS reported earnings on Tuesday of last week the premiums really dropped down. Since the stock was below where I bought and the premiums low, I was hoping for the stock to get above where I bought so I could get out. On Wednesday of this week the stock started up a little so I put in a sell order at $4.96. I bought the stock for $4.95. I really didn’t care about making money I just wanted out without losing money. I figured I’d add a penny to get out and get my commission paid. The stock hit $4.96 and I was executed. Last week I made $1000 on the Call I sold and this week I got completely out making 50 bucks. I am out without giving some of the premium back on the stock sale and I’m very happy. This deal is over!<\/p>\n
Profit +$50<\/strong><\/p>\n \n On Wednesday the 27th I sold 100 Naked contracts of the U.S. Steel $19 Calls. I received a premium of $.25 for a total of $2500. With the stock selling in the area of $18.50, this was a nice premium of over 1.3% for a 2 day option. Here’s the option order:<\/p>\n On Friday the stock was above my $19 Strike Price. This had me very concerned because if it stayed there I would have to deliver 10,000 shares of stock at a price above my Strike. Friday was very volatile and the stock dropped below $19 to $18.70. At $18.70 I bought 5000 shares to cover half my position. The stock returned above $19 and stayed above for the rest of the day. Right before the close the stock pulled back to the $19.10 area. I figured, let me buy the other 5000 shares and cover my entire position. I ended up getting the shares at $19.11. I was completely covered and I had 10,000 shares at an average price of $18.90 so when I got assigned at $19 I made $.10 on the 10,000 shares for a profit of $1000. The market closed with the stock at $19.11, I was assigned at $19 and this deal is over. A great end to a week that could have ended a lot worse.<\/p>\n Profit +$2500<\/strong><\/p>\n \n Profit +$1000<\/strong><\/p>\n \n \n This money is in the Mattress<\/strong><\/p>\n \n If you are trading, be very carful with May upon us. Many years I gave back my entire years profit in May. I hope this money I lost in past years was the cost of my education and I learned from it. Please take advantage of my mistakes and if you’re not trading, continue to not trading, and learn. At least until we see how May will go.<\/p>\n \n \n Steve<\/p>\n The Options Coach<\/em><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" It’s early Sunday and I just returned home from Boston. I love traveling and seeing other places but I love returning home to NYC. Plus the drive up 95 from NYC to Boston is not the most pleasurable one. Especially in damp cold weather. I back at my desk writing my week ending results and […]<\/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-1530","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-oG","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1530","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=1530"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1530\/revisions"}],"predecessor-version":[{"id":1531,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1530\/revisions\/1531"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}U.S. Steel<\/strong><\/span><\/h4>\n
Sell to Open 100 X 4\/29\/16 $19 C @ $.25 (+$2500)<\/strong><\/h4>\n
Expired 100 X 4\/29\/16 $19 C @ $.25\u00a0<\/strong><\/h4>\n
Assigned 10,000 shares X @ $19<\/strong><\/h4>\n
Total weekly Profit +$3550<\/strong><\/h3>\n