{"id":2243,"date":"2016-10-11T10:14:33","date_gmt":"2016-10-11T14:14:33","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=2243"},"modified":"2016-10-11T10:14:33","modified_gmt":"2016-10-11T14:14:33","slug":"bought-yelp-covered-calls","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=2243","title":{"rendered":"Bought Yelp, Covered Calls"},"content":{"rendered":"<p><a href=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1635\" data-permalink=\"https:\/\/www.mainstbeatswallst.com\/?attachment_id=1635\" data-orig-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?fit=75%2C90&amp;ssl=1\" data-orig-size=\"75,90\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Risk1\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?fit=75%2C90&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?fit=75%2C90&amp;ssl=1\" class=\"wp-image-1635 alignleft\" src=\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2016\/05\/Risk1-1.png?resize=98%2C118\" alt=\"Risk1\" width=\"98\" height=\"118\" \/><\/a><\/p>\n<p>If you read yesterday&#8217;s trade post you know I tried to do a Buy-Write with Yelp just before the close. I was executed on the Call but not on the buying of the stock. The call I was executed on was selling 50 contract of the Yelp 10\/14\/16 (this Friday) $41Call. I wanted to buy the stock <span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"http:\/\/www.mainstbeatswallst.com\/?page_id=304\">At-the-Money<\/a><\/span> but it went above the $41 mark and the market closed. This morning the stock was up about $.20 on a down day. It looked like it was going to continue up and go opposite the market. A little while ago it reversed and dropped below the $41 Strike Price. It went down to the $40.85 area and it looked like it was going to start up again. I bought the 5000 shares to cover my Call at $40.86. Now that I have a Covered Call I give the trade a<strong> Risk Factor a 1<\/strong>. When I only had the Naked Call the Risk Factor was a 5. Here&#8217;s the buy order:<\/p>\n<h4 style=\"text-align: center;\"><strong>Buy 5000 shares YELP @ $40.86<\/strong><\/h4>\n<p>&nbsp;<\/p>\n<p>Now that I bought the stock the stock is continuing to head south. As I write it&#8217;s at $40.50. I hope I didn&#8217;t make a mistake with the purchase of the stock. Although I&#8217;m hedged pretty well. I have the Call I sold yesterday which brought in a $3300 premium (insurance). Plus I have a Naked Call sold which expires 11\/18\/16 for more insurance against the stock moving down. I feel OK!<\/p>\n<p>&nbsp;<\/p>\n<p>Steve<\/p>\n<p><em>The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you read yesterday&#8217;s trade post you know I tried to do a Buy-Write with Yelp just before the close. I was executed on the Call but not on the buying of the stock. The call I was executed on was selling 50 contract of the Yelp 10\/14\/16 (this Friday) $41Call. I wanted to buy [&hellip;]<\/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-2243","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-Ab","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2243","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=2243"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2243\/revisions"}],"predecessor-version":[{"id":2244,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2243\/revisions\/2244"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}