{"id":1533,"date":"2016-05-02T11:18:37","date_gmt":"2016-05-02T15:18:37","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=1533"},"modified":"2016-05-02T11:18:37","modified_gmt":"2016-05-02T15:18:37","slug":"start-off-may-with-a-bang","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=1533","title":{"rendered":"Start off May with a Bang!"},"content":{"rendered":"

Today is the first trading day of May. Traditionally May is the start of a sideways or down market. Please go to my Message of the Day<\/a><\/span> on the site and see what I have to say.<\/p>\n

Staying with my strategy I just sold a Naked Call. It’s another big one! I sold 100 contracts of the $20.50 Calls on U.S. Steel expiring this Friday. I received a premium of $.30 for a total of $3000. There are a few reasons why I liked this option. To start, I still think the steel industry will have a pull back. I know I’ve been saying this for a few weeks now and it hasn’t happen yet but I’ve been doing OK with out the pull back and if there is a pull back I’ll do very well. If you look at it’s chart it looks like the stock might have hit resistance in the $20 area. This is why I sold the $20.50 Calls. I sold the Call when the stock was at $19.40. It still has over $1 before it goes In-the-Money<\/a><\/span>. You know I’ll be watching closely until expiration! This is a Naked Call, if I were to buy the stock and sell a Covered Call I would have to invest $194,000 for 10,000 shares at $19.40. I did not invest any money and I pay no margin interest. This is why I love Naked Calls. If I invested the $194,000 and received a premium of $3000, thats a 1.5% interest in one week. I’m getting the 1.5% interest on the $194,000 without laying out the cash. That’s a lot of interest! This is truly “money for nothing and your chicks for free” (I love that song lol). I’m giving this trade a Risk Factor<\/strong><\/span> of 4. It is a Naked Call which will normally get a 5 but it’s a $1 away from the Strike Price and I’ll be watching closely. If it gets close to the Strike I’ll cover by buying the stock. Here’s the sell order:<\/p>\n

Sell 100 X 5\/6\/16 $20.50 C @ $.30 (+$3000)<\/strong><\/h4>\n

 <\/p>\n

I must say the stock is moving better than I thought. As I write this it’s up to $19.90 and running. I may be covering sooner than I wanted to.<\/p>\n

I do not like owning this stock but with it running I had to cover this Call. I just bought the 10.000 shares at $20.18. This is the way it goes and this is truly live trading.Now I hope the stock goes up to $25 lol. Here’s the buy order:<\/p>\n

Buy 10,000 shares X @ $20.18<\/strong><\/h4>\n

 <\/p>\n

I keep the Risk Factor<\/strong><\/span> at 4 because of the risk of the stock going down and owning 10,000 shares.<\/p>\n

 <\/p>\n

Steve<\/p>\n

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

Today is the first trading day of May. Traditionally May is the start of a sideways or down market. Please go to my Message of the Day on the site and see what I have to say. Staying with my strategy I just sold a Naked Call. It’s another big one! I sold 100 contracts […]<\/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-1533","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-oJ","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1533","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=1533"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1533\/revisions"}],"predecessor-version":[{"id":1534,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1533\/revisions\/1534"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}