{"id":2914,"date":"2017-03-19T11:58:06","date_gmt":"2017-03-19T15:58:06","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=2914"},"modified":"2017-03-19T11:58:06","modified_gmt":"2017-03-19T15:58:06","slug":"results-week-ending-31717","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=2914","title":{"rendered":"Results Week Ending 3\/17\/17"},"content":{"rendered":"

The way things went this week I didn’t hit my weekly goal of $3000 as per my “2017 Challenge<\/a><\/span>.” I know I have the potential to do more every week so when I don’t hit the goal, I must say I feel like I let the readers down. Don’t worry, I’ll get over it lol. This year I am actually limiting what I make to teach the Grasshoppers<\/a><\/span> discipline. I know that sounds crazy but I’m not a money hungry guy. I just want to be able to take care of my family, have a nice home, drive a nice car, go on nice vacations and have enough to donate to causes I truly believe in. I don’t need to work my tail off just to fill the bank with money to be there when I die. I don’t want to be the richest guy in the cemetery! This week I got caught up dealing with the snow here in NYC, my pizza joint, the basketball tournament, St Patty’s Day, etc. I also had a house guest the entire week. As far as my account, my position with U.S. Steel was well below where I purchased the shares so I was waiting for the stock to rebound a little. It did rebound a little and it made my margin buying power look a little better so I was able to get a late week U.S. Steel “Buy-Write” in to save the week from a no gain week. I’ll have weeks like this but I’ll make up for the downfall in the coming weeks.<\/p>\n

This week I had 2 positions come to a conclusion. One with Tyson Foods (TSN) and the other was a “Buy-Write” with U.S. Steel (X). Both worked out great for me. Let’s start with Tyson Foods.<\/p>\n

Last week I sold a 30 contract Naked Call on TSN. The entire week the stock went down and I was looking good for expiration. On Friday with the market up, TSN had a big rebound and my Naked Call was In-the-Money<\/a><\/span> on Friday Expiration Day. I decided to not make a move on the position. If you hold a Naked Call position into the close on Expiration Day your broker has to deliver the stock for you. When they do this you end with a Short<\/a><\/span> position, which for me was 3000 shares of TSN. The stock closed a little more than $1 above my Strike Price. Through my broker, I had to borrow the stock at $63.55 and deliver it for $62.50. I was down $1.05 on 3000 shares. When you borrow the stock you have to pay it back. Lucky for me, on Tuesday of this week the stock came back down and I was able to buy the stock for $62.55 and return it to my broker. My broker delivered the stock for the Strike Price of $62.50 so I ended up losing 5\u00a2 on this position. Not bad! Plus I kept the premium from the sale of the option, $1500. This $1500 went toward last weeks gain and the 5\u00a2 lose on 3000 shares ($150) goes toward this week. When you make a decision to do what I did you must the check to make sure the stock is not HTB (Hard to Borrow). If it is you might have to make a different decision. If you have any questions on how this procedure works send me an email.<\/p>\n

Lose -$150\u00a0<\/strong><\/p>\n

\n

On Wednesday, with my margin buying power looking better, I was able to execute a “Buy-Write” with U.S. Steel. I bought 2000 shares at $35.90 and sold 20 contracts of the $36 Calls. This was a 2 day Covered Call. I received a premium of 75\u00a2 for a total of $1500. The stock went up and closed on Friday at $37.29, well above my Strike Price. I delivered the stock and the 2 day deal was over. I made the $1500 premium and 10\u00a2 on the stock for an additional $200. This trade brought in $1700 in 2 days. That’s a Rate of Return<\/a><\/span> of 2.3%. I love it!<\/p>\n

Total Gain +$1700<\/strong><\/p>\n

\n

It’s clear if I didn’t sell the Call and only bought the stock I would have made a lot more money. The stock closed at $37.29 and I bought 2000 shares at $35.90. That gain would have been $2780 and not $1700. I only made the $1700 because I sold the Call option. I was obligated to deliver the stock at my Strike Price of $36. I would have made an additional $1080. This is called an Opportunity Lost<\/a><\/span>. My long time readers know I do not care about this opportunity Lost. I’m not in this game to own stock, in fact I don’t like to. I’m in this game for the sale of the options and bringing in premiums. In the long run, I believe, the option sellers will do much better and have less risk. You just have to get over the Opportunity Lost. I’m up $1700 on the trade, I’m a winner! PERIOD!<\/p>\n

Total Weekly Gain +$1550<\/h4>\n

 <\/p>\n

A little short of my goal but I move on to next week. I feel a good one coming!<\/p>\n

 <\/p>\n

Have a great weekend! Enjoy the games.<\/p>\n

 <\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n

\n

\n","protected":false},"excerpt":{"rendered":"

The way things went this week I didn’t hit my weekly goal of $3000 as per my “2017 Challenge.” I know I have the potential to do more every week so when I don’t hit the goal, I must say I feel like I let the readers down. Don’t worry, I’ll get over it lol. […]<\/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-2914","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-L0","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2914","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=2914"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2914\/revisions"}],"predecessor-version":[{"id":2915,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/2914\/revisions\/2915"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}