{"id":2276,"date":"2016-10-13T12:46:05","date_gmt":"2016-10-13T16:46:05","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=2276"},"modified":"2016-10-13T12:46:05","modified_gmt":"2016-10-13T16:46:05","slug":"buy-to-close-my-u-s-steel-leap","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=2276","title":{"rendered":"&#8220;Buy to Close&#8221; My U. S. Steel LEAP"},"content":{"rendered":"<p>About 3 weeks ago on 9\/21\/16 I sold 100 contracts of the U. S. Steel (X) 1\/20\/17 $21Naked Call LEAP. I received a premium of $1.20 for $12,000. To pocket all of the $12,000 I would have to hold the Call until expiration, January 20th. Today with the market continuing to move south, X is down another $1. With 100 days left to my LEAP the premium was down to $.75. It would cost my $7500 to get out of the 100 contract deal. Remember this is a <span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"http:\/\/www.mainstbeatswallst.com\/?page_id=446\">short <\/a><\/span>position. If this was a long position, I would have bought first for $7500 then sold for $12,000. Being a short position, I sold before I bought. I sold for $12,000 and I can buy for $7500. To me this is a great opportunity to pocket $4500 for a 3 week investment. This is over a 2.5%<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"http:\/\/www.mainstbeatswallst.com\/?page_id=379\"> Rate of Return<\/a><\/span> in 3 weeks. So I pulled the trigger to get some money in my mattress. This Naked Call deal is over! Here&#8217;s the sell and buy orders:<\/p>\n<h4 style=\"text-align: center;\"><strong>Sell to Open 100 X 1\/20\/17 $21 C @ $1.20 (+$12,000)<\/strong><\/h4>\n<h4 style=\"text-align: center;\"><strong>Buy to Close 100 X 1\/20\/17 $21 C @ $.75 (-$7500)<\/strong><\/h4>\n<p style=\"text-align: center;\"><strong>Profit +$4500<\/strong><\/p>\n<p style=\"text-align: left;\">With the market moving down lately my stock positions are also down. This is another reason why I got out of this position. With my stocks down it makes it difficult to sell more Calls and get good premiums. I want to have a Strike Price where I will not get assigned, losing money on the stock. Because my stocks are down a little I might have to go out a bit and the premiums will be lower. Getting out of this 100 contract Naked position gives me a decent amount of margin availability to keep the money flowing while I wait for my stocks to recover. When this down trend is over there will be some nice buying opportunities.<\/p>\n<p style=\"text-align: left;\">If you have any questions on my strategy to pocket money and free up margin please email me.<\/p>\n<p style=\"text-align: left;\">\n<p style=\"text-align: left;\">Steve<\/p>\n<p style=\"text-align: left;\"><em>The Options Coach<\/em><\/p>\n<p style=\"text-align: left;\">\n","protected":false},"excerpt":{"rendered":"<p>About 3 weeks ago on 9\/21\/16 I sold 100 contracts of the U. S. Steel (X) 1\/20\/17 $21Naked Call LEAP. I received a premium of $1.20 for $12,000. To pocket all of the $12,000 I would have to hold the Call until expiration, January 20th. Today with the market continuing to move south, X is [&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-2276","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-AI","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2276","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=2276"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2276\/revisions"}],"predecessor-version":[{"id":2278,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2276\/revisions\/2278"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}