{"id":3141,"date":"2017-06-02T13:44:52","date_gmt":"2017-06-02T17:44:52","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3141"},"modified":"2017-06-02T13:44:52","modified_gmt":"2017-06-02T17:44:52","slug":"correction-with-my-triple-play-hedge","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3141","title":{"rendered":"Correction With My “Triple Play Hedge”"},"content":{"rendered":"

On Wednesday I posted that I did a “Triple Play Hedge<\/a><\/span>” with Weight Watchers (WTW). I reported that I bought 1000 shares of WTW and sold three 10 contract Calls to make the “Triple Play Hedge.” Yesterday while watching the position I realized I made a mistake when placing the order. As reported in my post, I did buy 1000 shares of the stock and sold a 10 contract Call to make a Covered Call. This Strike Price was a $26 Call. The mistake came when I placed the order for the next two Calls to make the “Triple Play Hedge.” When placing these orders I mistakenly entered 20 contracts and NOT 10 contracts. The first Call ($26), which is a 10 contract Call, expires today. But the Calls expiring next Friday the 9th ($27 Call), and the following Friday the 16th ($28 Call), both are 20 contract Calls. When I noticed the error it wasn’t a big deal because both of the Calls were Out-of-the-Money<\/a><\/span>, however, the stock was moving up. When the stock got near the second Call’s Strike Price I bought 2000 more shares at $26.75 to cover the $27 Call. Because of my crazy workload I didn’t get to post that trade. I did post it in my “Active Positions.” I know this gets very confusing, especially for Grasshoppers, but mistakes happen. You must be very careful! Anyone who made numerous trades in their life knows what I’m talking about.<\/p>\n

At the moment I have a 10 contract Call expiring today. This Call was covered from the start. I will be assigned today on this Call because it’s In-the-Money<\/a><\/span> by $1.50. I have a 20 contract $27 Call expiring next Friday. This Call is Covered so I’m safe. The last 20 contract Call of the “Triple Play Hedge”, is a $28 Call and this Call is Naked. As I write the stock is at $27.44. If it get close to my $28 Strike Price I’ll buy another 2000 shares to cover this Call also.<\/p>\n

If you have any questions on what a “Triple Play Hedge” is you can read the page and you can also send me an email. This is a great strategy and it would be good for you to completely understand.<\/p>\n

Also, if you have any questions on my mistake, send me an email. Believe it or not, these mistakes are very common. No matter how careful you are. It happens!<\/p>\n

 <\/p>\n

Steve<\/p>\n

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

On Wednesday I posted that I did a “Triple Play Hedge” with Weight Watchers (WTW). I reported that I bought 1000 shares of WTW and sold three 10 contract Calls to make the “Triple Play Hedge.” Yesterday while watching the position I realized I made a mistake when placing the order. As reported in my […]<\/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-3141","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-OF","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3141","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=3141"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3141\/revisions"}],"predecessor-version":[{"id":3143,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3141\/revisions\/3143"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}