{"id":6318,"date":"2019-11-11T13:31:07","date_gmt":"2019-11-11T18:31:07","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=6318"},"modified":"2020-04-23T12:57:41","modified_gmt":"2020-04-23T16:57:41","slug":"bought-a-u-s-steel-leaps","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=6318","title":{"rendered":"Bought a U.S. Steel LEAPS"},"content":{"rendered":"

Just bought a long term option on U.S. Steel (X).<\/p>\n

I am not a big fan of X. I\u2019ve done plenty with the stock over the years but it\u2019s really been in a nose dive.<\/p>\n

With my technical analysis I feel I can hold the option I just bought for a few weeks and get $2 out of the stock. I bought the 1\/15\/21 $13 Call. As you see this option doesn\u2019t expire until January 2021. Well over a year. I paid a premium of $3.30 for $3300.<\/p>\n

Buy to Open 10 X 1\/15\/21 $13.00 C @ $3.30 ($3300)<\/strong><\/p>\n

Let\u2019s take a look at why I made this trade. To start with, X reported earnings last week. The earnings were not great but they beat the street\u2019s estimates. This means the company is doing better than the analyst felt it was doing. But still working at a loss! Like I said I do not like the stock. That\u2019s why I did buy the stock. I think I can make a little but I wanted to invest less. If I bought the stock it would have cost me $13,450. Buying the LEAPS I only invested $3300. This option has a Delta of about .65. When I bought the Call the stock was at $13.45 and I sold the $13 Call. If you sell At-the-Money your Delta will be .50. My Delta of .65 means my premium will group 65\u00a2 for every $1 move in the stock. I think I\u2019ll get $2 on the stock so hopefully I get over $1 on the premium. If I do it will be a $1000 profit. This is what I\u2019m hoping for.<\/p>\n

Take a look at this snap shot of the chart.<\/p>\n

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

This Candlestick Chart is in a clear \u201cW\u201d pattern. Let\u2019s take a look at what I see. The 2 green arrows are pointing to a white horizontal line. The left green arrow is where the horizontal line hits the top of the W. I also put a blue horizontal line which hits the middle peak of the W. Indicated with the red arrow. Also on this blue line is a yellow arrow where the stock is now. The blue arrow is pointing where the 8 Day MA is crossing the the 50 Day MA. This is a bullish move for the 8 Day MA. The white arrow is pointing to the 200 Day MA. I think the left side of the W, indicated with the yellow arrow, will continue up and cross over the 200 Day MA, at least meet it. If it does, there is a good chance the 8 Day MA will bounce off the 200 Day MA and start down. I did feel the stock will raise up to the 200 Day MA, which will be a little over $15. I think the stock can possibly go up to the white horizontal line where the right green arrow is. This would be normal for a W pattern. Let\u2019s see what happens<\/p>\n

I made this trade about 30 minutes ago. I was interrupted with 2 disturbing phone calls reporting the deaths of 2 very close friends.<\/p>\n

\n

Also in this time I was filled on a Covered Call with 1000 shares of DISH. I sold the DISH 11\/15\/19 $36.50 Call for a premium of 40\u00a2.<\/p>\n

Sell to Open 10 DISH 11\/15\/19 $36.50 C @ 40\u00a2 (+$400)<\/strong><\/p>\n

Also I took the buy order off AMD. I decided to stay Naked on the Call I sold this morning.<\/p>\n

I\u2019ll write more a little later. I\u2019m not thinking clearly right now with the bad news I received.<\/p>\n

Successful trading,<\/p>\n

Steve<\/p>\n

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

Just bought a long term option on U.S. Steel (X). I am not a big fan of X. I\u2019ve done plenty with the stock over the years but it\u2019s really been in a nose dive. With my technical analysis I feel I can hold the option I just bought for a few weeks and get […]<\/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-6318","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\/p75MP0-1DU","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6318","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=6318"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6318\/revisions"}],"predecessor-version":[{"id":7503,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/6318\/revisions\/7503"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}