{"id":3157,"date":"2017-06-05T14:41:15","date_gmt":"2017-06-05T18:41:15","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3157"},"modified":"2017-06-05T14:41:15","modified_gmt":"2017-06-05T18:41:15","slug":"skechers-triple-play-hedge","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3157","title":{"rendered":"Skechers “Triple Play Hedge”"},"content":{"rendered":"

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

Skechers (SKX) received an upgrade today. About 11am I entered 4 orders to do a “Triple Play Hedge<\/a><\/span>.” 1 order was to buy 1000 shares of the stock and 3 orders were to sell Call Options. I just got executed on all 4 orders. I am well aware that an upgrade can cause a stock to go up and selling Calls is a short<\/a><\/span> position. I like to sell Covered Calls on stock that, hopefully won’t go down. When doing Covered Calls I like to get assigned. If I get assigned I don’t lose money! I might have an opportunity lost<\/a><\/span>, but I can live with that. When selling Naked Calls I want the stock to go down. In a “Triple Play Hedge” I don’t mind the stock to go up a little because I buy the stock and sell 3 Calls. The first Call is a Covered Call and the next two are Naked, but the Strike Price is out a little more than the first Call. If the stock goes down I have 3 Calls where the premiums act as insurance. If the stock goes up, the first Call is Covered, so I’m safe. If the stock continues up I buy more stock before the stock gets up to my second Strike Price. I love this strategy! Which I invented. As I write the Covered Call, which is the first Call in In-the-Money<\/a>, t<\/span>he stock is at $27.10 and the Strike Price is $27. The next Call has the Strike Price of $27.50 and I have an order in to buy another 1000 shares if the stock gets up to $27.45. If it never gets up to that buy price, I stay Naked. Because the first Call is Covered and the second Call has a buy order in to buy the stock, I give this “Triple Play Hedge” trade a Risk Factor 2<\/strong>. I will watch closely to see if I have to put in a buy order to cover the third Call. Below you will see the 4 executed orders.<\/p>\n

 <\/p>\n

\u00a0Buy 1000 Shares SKX @ $26.90<\/p>\n

\u00a01st leg – Sell to Open 10 SKX 6\/9\/17 $27 C @ 45\u00a2 (+$450)<\/p>\n

\u00a02nd leg – Sell to Open 10 SKX 6\/16\/17 $27.50 C @ 50\u00a2 (+$500)<\/p>\n

3rd leg – \u00a0Sell to Open 10 SKX 6\/23\/17 $28 C @ 55\u00a2 (+$550)<\/p>\n

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If you are interested in what I’m doing you must learn what a “Triple Play Hedge<\/a><\/span>” is and the reason for it. Go to the page and make sure you understand. If not, send me an email.<\/p>\n

With this trade I bought 1000 shares of SKX at $26.90. The shares cost me $26,900. I brought in a total of $1500 in premiums. This deal, if it goes the way I want, will have a Rate of Return<\/a><\/span> of 5.5% in 19 days. That is a little less than 3 weeks! This is the type of trade I love. If you’re looking for more your risk goes way up. You better have a lot of capital to lose and you better have a very high risk tolerance. I wouldn’t listen to these stock gurus on FaceBook that say they’ll get you 20, 30, and 40% a week. They want to lie to you to make it sound great so you sign up for a subscription. I’ll never know why someone making so much money needs your subscription money. I make my money doing what I preach. I don’t need money from you. I want to help you make your own money while I’m making mine. Even being careful the way I trade is very difficult to be successful. You must be careful and very disciplined. Sometimes I wonder why I do this site because I know how hard it is. I would hate to see anyone lose money. Main Street beats Wall Street<\/strong> is for someone who wants to trade and is gonna get into it no matter what I say. I want to help prevent you from losing hard earned money. And tell the truth while others are lying to you.<\/p>\n

Let’s watch this “Triple Play Hedge” and see how I do. The one I did last week is doing well. The first leg expired and I was assigned on the shares. I covered the second leg.<\/p>\n

\n

Steve<\/p>\n

The Options Coach\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Skechers (SKX) received an upgrade today. About 11am I entered 4 orders to do a “Triple Play Hedge.” 1 order was to buy 1000 shares of the stock and 3 orders were to sell Call Options. I just got executed on all 4 orders. I am well aware that an upgrade can cause a stock […]<\/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-3157","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-OV","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3157","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=3157"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3157\/revisions"}],"predecessor-version":[{"id":3159,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3157\/revisions\/3159"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}