I have 2 Naked Calls expiring today. I just covered 1.<\/p>\n
The markets are hanging around the even point but Advanced Micro Devices (AMD) and U.S. Steel (X) are showing some strength.<\/p>\n
I decided to cover X. I had a 10 contract Covered Call all week buying the stock at $13.50 and selling the $13.50 Calls. This wasn\u2019t a huge position, but I respect all, and I scratch to bring in all the money I can. This was an At-the-Money<\/a><\/span> Covered Call for a premium of $450. It might not sound like much for the adjustment trades I\u2019m making, but remember, it\u2019s all about the Rate of Return. This investment brought in a 3.3% return in one week. This is the type of deal I trade for.<\/p>\n As I write the market just started down a bit with the wholesale inventory report. News moves the ma<\/em>rkets!<\/p>\n When I made the original trade I didn\u2019t want to buy X, but I did. When the stock went up to $13.70 I felt it would go back down so I sold my stock, going naked. I made $200 on the sale. The stock did go down and I felt I would stay naked until the Call expired. Today the stock is showing some strength so I decided to buy the stock and cover the Call, again. I just bought 1000 shares of X at $13.42. As I\u2019m writing the stock just went above my Strike Price of $13.50, and I hope it stays above my Strike so I get assigned. If not I\u2019ll sell another Call before the close to expire next Friday.<\/p>\n Buy 1000 Shares X @ $13.42<\/strong><\/p>\n I now have a Covered Call. My X trade is now a Risk Factor 1<\/strong>. In the beginning it was a 3 but it\u2019s showing strength so I\u2019m not in fear of the bottom falling out.<\/p>\n