{"id":2015,"date":"2016-09-02T11:04:19","date_gmt":"2016-09-02T15:04:19","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=2015"},"modified":"2016-09-02T11:04:19","modified_gmt":"2016-09-02T15:04:19","slug":"5-minute-u-s-steel-trade","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=2015","title":{"rendered":"5 minute U.S. Steel trade"},"content":{"rendered":"

\"Risk5\"<\/a><\/p>\n

The market opened higher and soon after the open the market was up triple digits. This was as a result of a good August jobs report. “Main Street beats Wall Street<\/strong>” readers know I have a 100 contract Put on U.S. Steel (X) which expires today. The Strike Price for this Put is $19.50. If X closes below $19.50 I will be put 10,000 shares of X at $19.50. At the open the market went up and X followed along which was good for my position because I really don’t want to buy 10,000 shares of the stock. It’s been moving down lately! The market was up triple digits and X was up to $19.93. Looking good! Well not long into the trading day X started moving down. The market was still up but X was moving down! X was moving down fast, through the $19.80’s, $19.70’s, $19.60’s and it continued down. When it was all the way down to $19.07 I decided to Short<\/a><\/span> 10,000 shares. I really don’t like to Short but the way it was moving down I decided to capitalize on the decline. I did not plan on staying with the Short long and basically I was gambling! Once in a while I get weak! The stock got down to the $19 mark and hung there for a few minutes. Then it broke the $19 level and I put in an order to buy the 10,000 shares to close the trade. I put the order in to buy at $18.90. Within a minute the stock went to my buy order price and I was executed. I wiped my brow, sat back in my chair and made the sign of the cross.<\/p>\n

I do not like making this trade and I made a similar trade yesterday; I’m glad they both worked out. I Shorted X at $19.07, meaning I sold the stock and I bought the stock at $18.90. That’s a $.17 gain. This trade was 5 minutes. I didn’t even have a chance to post the Short because I was watching the stock like a hawk. The $.17 gain on 10,000 shares is a profit of $1700 in 5 minutes. It worked out great but I don’t like doing it. It’s against my strategy and its very stressful. If the stock reversed and went back up it would have been a problem. Any Short on a volatile stock gets a Risk Factor of 5. Here’s the Short and buy orders:<\/p>\n

Short 10,000 shares X @ $19.07<\/strong><\/h4>\n

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

Profit +$1700<\/p>\n

\n

As I finish writing this post U.S. Steel is at $18.80. Still going down!<\/p>\n

Now I have to figure out what I’m going to do with my Put expiring today. It is In-the-Money<\/a><\/span>! If it stays In-the-Money till closing I’ll have to do a Roll Out<\/a><\/span> or have the stock put to me. I’ll wait to see where it is at closing.<\/p>\n

\n

\n

Steve<\/p>\n

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

The market opened higher and soon after the open the market was up triple digits. This was as a result of a good August jobs report. “Main Street beats Wall Street” readers know I have a 100 contract Put on U.S. Steel (X) which expires today. The Strike Price for this Put is $19.50. If […]<\/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-2015","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-wv","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2015","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=2015"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2015\/revisions"}],"predecessor-version":[{"id":2016,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2015\/revisions\/2016"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}