{"id":2324,"date":"2016-10-21T11:19:32","date_gmt":"2016-10-21T15:19:32","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=2324"},"modified":"2016-10-21T11:19:32","modified_gmt":"2016-10-21T15:19:32","slug":"u-s-steel-1-day-covered-call","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=2324","title":{"rendered":"U.S. Steel 1 Day Covered Call"},"content":{"rendered":"

\"Risk1\"<\/a>The steel companies are on a roll! As a Main Street beats Wall Street<\/strong> reader you know I’m very involved in U.S. Steel (X) for a long time now and watch it very closely. Yesterday I did a day trade with 5000 shares of the stock and made a quick $500 in a few minutes. This morning with the market down 100 pts. the steel companies are moving big because of Steel Dynamics’ (STLD) favorable earnings report. As I was watching my Candlestick Charts and my Moving Averages on the charts, I felt X was going to have a very nice day. X opened at $19.14 and a little after the opening it started moving up. When the stock got over $19.25 I put in an order to buy 5000 shares at $19.30. I was executed and I own the 5000 shares. Here’s the order:<\/p>\n

Buy 5000 shares X @ $19.30<\/strong><\/h4>\n

 <\/p>\n

I got into this trade to do exactly what I did yesterday. I wanted to make a $.10 or $.20 and get out. As I was watching, the stock started to take off. Before I knew it the stock was over $19.50. I was contemplating selling a Call to expire today at the close because the premium for the $19.50 was at $.20. If I did that and it went well and I got assigned, I’d make $.20 on the stock ($1000) and $.20 on the premium ($1000). That would be a great trade for one day. I was putting in the order to sell the Call but the stock was moving up further. Before I could get the order in, the stock was up to $19.75. Now I started looking at the $20 Calls; they were about $.15. I decided to put the order in to sell 50 contracts of the X 10\/21\/16 (today) $20 Call for $.20. The stock went up to $19.95 and I was executed. This was a Call sold on stock I just bought so it’s a Covered Call. I give this trade a Risk Factor of 1<\/strong>. Here’s the sell order:<\/p>\n

Sell to Open 50 X 10\/21\/16 $20 C @ $.20 (+$1000)<\/strong><\/h4>\n

 <\/p>\n

As I write the stock is above the $20 Strike Price. What do I hope happens? I hope the stock stays above $20 and I get assigned. If that happens, I would make $.70 on the stock ($3500) and $.20 on the Call ($1000). This would be a fantastic 1 day gain! If it drops below $20 for the close, I keep the 5000 shares, on a very hot stock and keep the $1000 premium. I like where I stand.<\/p>\n

I projected a slow week. This trade, if it goes my way, can make this a very nice week. Let’s watch and see!<\/p>\n

Please check out my new page, All Trade Confirmations<\/a><\/span>. The confirmations for these trades are there.<\/p>\n

 <\/p>\n

Steve<\/p>\n

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

The steel companies are on a roll! As a Main Street beats Wall Street reader you know I’m very involved in U.S. Steel (X) for a long time now and watch it very closely. Yesterday I did a day trade with 5000 shares of the stock and made a quick $500 in a few minutes. […]<\/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-2324","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-Bu","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2324","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=2324"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2324\/revisions"}],"predecessor-version":[{"id":2325,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2324\/revisions\/2325"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}