Today is MLK day. The end of a 3 day weekend. I had an extremely busy weekend and I am just sitting down now to write my week ending report which ended on Friday. I had a very nice week! I didn’t have many trades which is part of my strategy for the new year. I’ll be writing about it when I release my “2017 Challenge” strategy, hopefully soon. All my trades involved 2 stocks, U.S. Steel and Micron. Let’s take a look at what I did.<\/p>\n
As the Main Street beats Walls Street<\/strong> readers know I own 10,000 shares of U.S. Steel (X). I carried the shares over from 2016. To start the year off I sold a Call against these shares last week. The stock did not hit my Strike Price and the Call expired. To start this week I still owned the shares so I sold another Call. I sold the Call near the opening of the market on Monday morning. I sold 100 contracts of the 1\/13\/17 $36.50 Calls which gave me a premium of 60\u00a2 for a total of $6000. I was hoping to hold the Call for the week, have the stock go above my Strike Price, get assigned, make some money on the stock and keep the $6000 premium. I want to get out of my shares or at least reduce the size of my holding. Well, as soon as I sold the Call the stock went down and in about 10 minutes the 60\u00a2 premium was down to 30\u00a2. You must understand that when you sell a Call you are in a Short<\/a><\/span> position. With a short position, when the stock goes down your position become more valuable. When the Call was worth 30\u00a2 I decided to close the position with a quick profit, so I bought the Call to close the position. I sold for 60\u00a2 ($6000) and I bought for 30\u00a2 ($3000). I made $3000 in 10 minutes. We have a few new readers. Make sure you completely understand how a short position works. Here’s the in and out order forms:<\/p>\n Profit +$3000<\/strong><\/p>\n Since I was in and out of this position so fast with the dropping of X. I was hoping the stock would go back up and I could sell another Call. The next day on Tuesday the stock came back up. This time I sold (2) 50 contracts Calls instead of (1) 100 contract Call. I sold a $36 Call (40\u00a2 for $2000) and a $36.50 Call (35\u00a2 for $1750). I was hoping the stock would get above $36 and I would get assigned on 5000 shares to reduce my position. And I really didn’t care what happened to the $36.50 Call. If I got assigned, fine. If not I would keep the 5000 shares and sell another Call this coming week. The stock didn’t get above $36 and both Call expired. I keep the 2 premiums of $2000 and $1750, plus I keep the 10,000 shares of X. Here’s the 2 Calls that expired:<\/p>\n Profit +$2000<\/strong><\/p>\n Profit +$1750<\/strong><\/p>\n On 1\/4\/17 I bought 3000 shares of Micron (MU). Last week I sold a Call which expired and this week I stilled owned the stock. On Monday, right after I did that first U.S. Steel trade I sold another Call on MU. I sold 30 contracts of the 1\/13\/17 $22.50 Calls and brought in a 35\u00a2 premium for $1050. The stock didn’t go above the Strike Price of $22.50. I keep the premium of $1050 and I keep the 3000 shares of stock. Here’s the order:<\/p>\n Profit +$1050<\/strong><\/p>\n On Monday my 10,000 shares of U.S. Steel will open at $32.70 and my 3000 shares of Micron at $22.18. I’m not worried about Micron but I’m a little concerned with holding 10,000 shares U.S. Steel. I hope they both go up so I can get Calls sold on them.<\/p>\n <\/p>\n I hope everyone enjoyed the 3 day weekend. Back to work in the morning.<\/p>\n Any questions, send me an email.<\/p>\n <\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Today is MLK day. The end of a 3 day weekend. I had an extremely busy weekend and I am just sitting down now to write my week ending report which ended on Friday. I had a very nice week! I didn’t have many trades which is part of my strategy for the new year. […]<\/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-2565","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-Fn","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2565","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=2565"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2565\/revisions"}],"predecessor-version":[{"id":2567,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2565\/revisions\/2567"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Sell to Open 100 X 1\/13\/17 $36.50 C @ 60\u00a2 (+$6000)<\/h4>\n
Buy to Close 100 X 1\/13\/17 $36.50 C @ 30\u00a2 (-$3000)<\/h4>\n
Sell to Open 50 X 1\/13\/17 $36 C @ 40\u00a2 (+$2000)<\/h4>\n
Expired 50 X 1\/13\/17 $36 C<\/h4>\n
Sell to Open 50 X 1\/13\/17 $36.50 C @ 35\u00a2 (+$1750)<\/h4>\n
Expired 50 X 1\/13\/17 $36.50 C<\/h4>\n
Micron<\/h4>\n
Sell to Open 30 MU 1\/13\/17 $22.50 C @ 35\u00a2 (+$1050)<\/h4>\n
Expired 30 MU 1\/13\/17 $22.50 C<\/h4>\n
Total Weekly Gain +$7800<\/h4>\n