Yesterday I did a Buy-Write with U.S. Steel (X). I bought 5000 shares of the stock at $17.60 and I sold an $18 Call expiring this Friday. Before I did this Buy-Write I already had a 50 contract Covered Call on X. When I did the Buy-Write I did not feel comfortable purchasing another 5000 shares for a total of 10,000 shares. Today X was moving up and down all day. The low was $17.42 and the high was $18.06. When it went down my heart was not beating well and when it went up I felt better. With the stock near it’s high a few minutes ago, I decided to sell 5000 shares and go naked on my 50 contracts of the $18 Calls. I sold the shares at $18.02. I grabbed a $2100 profit on the stock but I’m Naked on the $18 Calls. The question is, why did I do this?<\/p>\n
With 2 days to expiration I’m really not happy with the way the market’s moving. The stock hit $18 a few times during the day and returned down. I do not feel the stock is going to have a big break out. I decided I would rather take the chance on the stock closing Friday In-the-Money and have to do a Roll Out than take the chance of the 5000 shares going down a point or two. I will watch this closely to see what I might have to do with this new Naked Call. I’m hoping the stock closes on Friday below $18 and the Call will expire. Either way, for the time being, I just put $2100 in my mattress.<\/p>\n
Profit +$2100<\/strong><\/p>\n \n I’ll put this in my mattress but not too deep until I see what happens with my Naked Call.<\/p>\n \n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Yesterday I did a Buy-Write with U.S. Steel (X). I bought 5000 shares of the stock at $17.60 and I sold an $18 Call expiring this Friday. Before I did this Buy-Write I already had a 50 contract Covered Call on X. When I did the Buy-Write I did not feel comfortable purchasing another 5000 […]<\/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-1781","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-sJ","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1781","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=1781"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1781\/revisions"}],"predecessor-version":[{"id":1782,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/1781\/revisions\/1782"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}