This was a closing bell I was watching closely. I was watching all my position for a good reason. Of cause the big reason is today was an Expiration Day. I was watching Yelp because I had a $38 Call expiring and the stock closed at $37.95 so I keep the premium, plus I keep the stock. GPRO had a few upgrades today so I was watching to see where that was going. And I put in a buy order to buy my way out of my U.S. Steel (X) LEAP. Yelp and GPRO I’ll cover in my week ending report. U.S. Steel I’ll go over now because I was executed on my trade at the close.<\/p>\n
My X LEAP trade was becoming complicated and I’m glad to get it off my books. If you remember back on 7\/5 I sold a 50 contract Call (1A) on X. And on 7\/7 I sold another X 50 contract Call (2A). Both of these trades went against me and I had to do a Roll-Out<\/a><\/span> on each one to prevent me from losing money. Below are the trades and the Roll-Outs, and below that I’ll explain how this trade ended.<\/p>\n (1A) 7\/5\/16 – Sell to Open 50 X 7\/8\/16 $18 C @ $.31 (+$1550)<\/p>\n (1B) 7\/8\/16 – Buy to Close 50 X 7\/8\/16 $18 C @ $1.00 (-$5000)<\/p>\n Originally I sold a Call on 7\/5\/16 for a premium of $1550. When that didn’t didn’t go my way I did a Roll-Out. I bought that Call back for $5000 (I’m now down $3450) and sold another Call (below) for the premium of $5850. At this point I’m up $2400.<\/p>\n (1C) 7\/8\/16 – Sell to Open 50 X 7\/22\/16 $18.50 C @ $.17 (+$5850)<\/p>\n (up $2400 on the Roll-Out)<\/p>\n At the same time this was going on I had the second 50 contract going that I sold on 7\/7\/16. Since this was with the same stock this also wasn’t going my way.<\/p>\n (2A) 7\/7\/16 – Sell to Open 50 X 7\/15\/16 $18 C @ $.69 (+$3450)<\/p>\n When this second 50 contract Call(2A) wasn’t going well along with the Roll-Out of the first Call (1C), I decided to combine them together and do a 100 contract LEAP Call (3A) expiring in January. I bought back (1C) and (2A). See the orders below.<\/p>\n (1D) 7\/12\/16 – \u00a0Buy to Close 50 X 7\/22\/16 $18.50 C @ $2.20 (-$11,000)<\/p>\n (2B) 7\/12\/16 – Buy to Close 50 7\/15\/16 $18 C @ $2.70 (-$13,500)<\/p>\n At this point if you add (1A) +$1550, (1B) -$5000, (1C) +$5850 & (1D) -$11,000 I am down -$8600.<\/span><\/p>\n And from the second Call (2A) +$3450, (2B) -$13,500 I am down -$10,050<\/span><\/p>\n You add up these two numbers from the two 50 contract Calls, I am down -$18,650.<\/p>\n After I bought my way out go the two 50 contracts Call for a total of $18,650, to complete the final Roll-Out I sold the 100 contract $21 LEAP expiring in January. The Call brought in a premium of $3.10. On the 100 contracts (10,000 shares) the total premium was $31,000. Here’s the order:<\/p>\n (3A) 7\/12\/16 – Sell to Open 100 X 1\/20\/17 $21 C @ $3.10 (+$31,000)<\/p>\n