{"id":2431,"date":"2016-11-15T10:42:58","date_gmt":"2016-11-15T15:42:58","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=2431"},"modified":"2016-11-15T10:42:58","modified_gmt":"2016-11-15T15:42:58","slug":"sold-calls-on-my-yelp-shares","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=2431","title":{"rendered":"Sold Calls On My Yelp Shares"},"content":{"rendered":"

\"Risk1\"<\/a><\/p>\n

On 10\/11\/16 I bought 5000 shares of Yelp at $40.86. At the time the stock was on a crazy run so I decided to hop on board. As soon as I did the stock reversed! The stock went into a free fall all the way down to the low 30’s until their earnings report came out. The stock had a big jump but stopped in the high 30’s. In this 3 week period I didn’t have a chance to sell Calls because the stock was much below my purchase price and I wasn’t able to get a decent premium. Today the stock and the entire NASDAQ is on a run and Yelp is up $1.90. With the stock at $37.70 I was able to get a nice premium for the $39.50 Calls expiring this Friday. I got $.25 ($1250) on 50 contracts. This is not the best situation because I bought the stock at $40.86 and sold the Call with the Strike Price of $39.50. I hope I don’t get assigned at my Strike because I’d lose $1.36 on the stock. The bottom line is I hope the stock stays below $39.50. If it gets up there before this Friday I’ll make some kind of counter move. Let’s watch and see what happens. I give this trade a Risk Factor<\/strong> of 2. It is a Call sold on previously owned stock but if I get assigned I’ll lose money on the stock. If I sold the Call at or above my purchase price the Risk Factor would be a 1. If I went for the $41 Call I wouldn’t be able to get a premium of over a few cents. Here’s the order:<\/p>\n

Sell to Open 50 YELP 11\/18\/16 $39.50 C @ $.25 (+$1250)<\/strong><\/h4>\n

 <\/p>\n

As I was writing Yelp came down a little helping my trade. I sold the Call with the stock at $37.70 and the stock is now at $37.15.<\/p>\n

 <\/p>\n

Steve<\/p>\n

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

On 10\/11\/16 I bought 5000 shares of Yelp at $40.86. At the time the stock was on a crazy run so I decided to hop on board. As soon as I did the stock reversed! The stock went into a free fall all the way down to the low 30’s until their earnings report came […]<\/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-2431","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-Dd","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2431","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=2431"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2431\/revisions"}],"predecessor-version":[{"id":2432,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2431\/revisions\/2432"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}