I just sold 1000 shares of U.S. Steel (X) which was covering a 10 contract Call.<\/p>\n
Last Friday I did a Buy-Write with X. I wanted to sell the Call but I was up in the air whether I wanted to own the stock or not. I sold the $13.50 Call and I ended up buying the stock right At-the-Money<\/a><\/span>, $13.50. I really didn\u2019t want to own the stock but I felt it was dangerous doing a Naked Call on a stock that just came out with a nice earnings report.<\/p>\n I was worried about this position all week, and yesterday the stock dropped down to $12.83. I felt the stock was gonna drop back and it did. I was worried I\u2019d be stuck in the position for a while. Today X is up with the market. I just made a ballsey trade and sold my shares of X at $13.70. Anyone would say I\u2019m crazy selling a stock 20\u00a2 In-the-Money with 1 day til expiration. Well, that\u2019s how much I don\u2019t want to own the stock. I have such little confidence in the stock that I feel it will be below my Strike Price by tomorrow\u2019s close.<\/p>\n 11\/1\/19 \u2013 Buy 1000 Shares X @ $13.50<\/strong><\/p>\n 11\/7\/19 \u2013 Sell 1000 Shares X @ $13.70<\/strong><\/p>\n If X closes above my Strike Price tomorrow my Call will expire and I\u2019ll have to deliver the stock at $13.50. If this happens my broker will borrow the shares because I don\u2019t own them. At this point I\u2019ll be Short 1000 shares of X. The way I\u2019m looking at this trade is I\u2019d rather plan on going short on the 1000 shares instead of holding. \u00a0I think the stock will be below my Strike for the close tomorrow. I do not want to get stuck with X at $12. I\u2019d rather go short and hold the short position until it comes down. And make $200 on the sale of the stock today.<\/p>\nProfit +$200<\/strong><\/h4>\n