{"id":2012,"date":"2016-09-01T10:49:54","date_gmt":"2016-09-01T14:49:54","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=2012"},"modified":"2016-09-01T10:49:54","modified_gmt":"2016-09-01T14:49:54","slug":"big-u-s-steel-adjustment-trade","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=2012","title":{"rendered":"Big U.S. Steel Adjustment Trade"},"content":{"rendered":"

Well, I’m on a bumpy road! It was starting to concern me so I took \u00a0detour. The market opened up modestly and so did U.S. Steel (X). But a few minutes into the trading day X starting heading down. With the stock in the $19.20 area I started to think about an adjustment trade. The problem is a few days ago I sold a 100 contract $19.50 Put. This means if X closes below $19.50 tomorrow (Friday), someone will be selling me 10,000 shares at $19.50. If the stock goes down to, say, $18.50 I would pay $19.50 for a stock at $18.50. I would own the stock, but my account would be down $10,000. I’m really not liking the way X is moving as of late so I made a move. I Shorted 10,000 shares of X. What this does is, if X continues down, my Put will lose value but I’ll be gaining value on my 10,000 shares Short<\/a><\/span>. For Grasshoppers<\/a><\/span> this can get complicated. I’ll only reporting what I’m doing and reiterating that adjustments trades are very important when trading options. I sold the Short at $19. I’ll be watching this very closely! If X continues down I might buy back my Short and Roll Out the Options. If X reverses and goes up I’ll have to make a decision on the Short while I leave the option alive. I’ll be watching and be filling you in as I go. Here’s the Short order:<\/p>\n

Short 10,000 shares X @ $19<\/strong><\/h4>\n

 <\/p>\n

 <\/p>\n

Stay tuned!<\/p>\n

 <\/p>\n

Right before I hit send on this trade post I bought back my Short<\/a><\/span> for $18.90. This is live trading!….. Please understand what Shorting is. I sold the stock at $19 and I bought the stock at $18.90. Shorting goes in the opposite direction at buy low and sell high. With Shorting you sell high first and buy low to close the trade. This is what I just did. On the 10,000 shares I made $.10 in 5 minutes. That’s a profit of $1000. This money is going in my mattress. Here’s the buy order:<\/p>\n

Buy 10,000 shares X @ $18.90<\/strong><\/h4>\n

Profit $1000<\/p>\n

\n

Please send questions on this and let me know you’re alive!<\/p>\n

 <\/p>\n

 <\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Well, I’m on a bumpy road! It was starting to concern me so I took \u00a0detour. The market opened up modestly and so did U.S. Steel (X). But a few minutes into the trading day X starting heading down. With the stock in the $19.20 area I started to think about an adjustment trade. The […]<\/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-2012","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-ws","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2012","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=2012"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2012\/revisions"}],"predecessor-version":[{"id":2013,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2012\/revisions\/2013"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}