When it comes to Tyson Foods (TSN), I’m one happy trader!<\/p>\n
For you Main Street beats Wall Street readers<\/strong>, you know I had a Short position in TSN. That’s the stock not an option. If you’re not familiar with this trade please read Results Week Ending 3\/10\/17<\/a><\/span>. I sold 30 contracts of a TSN Naked Call last week. When Expiration Day came around my Call was In-the-Money<\/a><\/span>. I had to deliver the stock at $62.50 but the stock closed at $63.55. Instead of making a move with the option before the close of the market on Friday, which I explained in my report, I decided to let my broker deliver the stock (which I didn’t own). For you Grasshoppers<\/a><\/span>, this can get complicated, but at this point I was Short<\/a><\/span> 3000 shares of TSN. Please read my page on “Long & Short Positions<\/a>.” It’s very important you know exactly how they work.<\/span><\/span><\/p>\n The Bottom Line<\/strong>: My broker lent me the 3000 shares at $63.55 and deliver them to my Call buyer for $62.50. At this point my account was down $1.05 per share (-$3150). My broker delivered the shares, so at some point I have to buy the 3000 shares to return them to them. My goal is to buy the shares for $62.50 or lower so I don’t lose money. If the stock comes down my Short position increases in value. I bought at $63.55 to sell at $62.50 to my Call buyer. I am losing $3150. If the stock comes back down to $62.50 my Short position would gain value and I would be even. Well, I just bought the stock at $62.55 and I lost 5\u00a2 ($150), no big deal!. And this deal over! However, with the stock closing In-the-Money the trade got extended a little then I wanted. The result is I make the $1500 premium on the option and I lost $150 on the stock I had to Short. I am very Happy! I hope this makes sense. If not send me an email. It’s very important to understand.<\/p>\n I reported the $1500 gain last week so this week I’m only reporting the $150 loss.<\/p>\n Loss -$150<\/strong><\/p>\n \n I expect to get some emails on this. Send them on out.<\/p>\n \n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" When it comes to Tyson Foods (TSN), I’m one happy trader! For you Main Street beats Wall Street readers, you know I had a Short position in TSN. That’s the stock not an option. If you’re not familiar with this trade please read Results Week Ending 3\/10\/17. I sold 30 contracts of a TSN Naked […]<\/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-2895","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-KH","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2895","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=2895"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2895\/revisions"}],"predecessor-version":[{"id":2896,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2895\/revisions\/2896"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}