I would like to thank everyone for the great e-mails. I'm sorry I didn't get right back to you faster and I'm sorry I didn't write on the blog in a few days. This will happens once in a while because of my schedule. My three business' and my trading, plus a little fun (alright a lot of fun), makes me burn the candle from both ends. This little 6 day break I took was because of a motorcycle trip from Fort Lauderdale to Key West. For you who rode or the ones who know me, you know the fun we had. Returned back to N.Y. last night and it's back to work today. Lets get started......In my last post I gave you all my positions, which are also in the new section labeled "Current Positions". There is a few positions I failed to enter. They involve the company AK Steel (ticker AKS). I own 4000 shs. of AKS which I purchased at different times. When I have this situation of multiple buy dates I will write "Multiple" in the date section of my "Current Positions". I bought 3000 shs. at different times and I was assigned 1000 shs. from an April $22 put. I own the 4000 shs. at the average price of $22.82. I already received premiums on calls I sold on some of the shares for the last two periods. I did not sell the calls for May yet because the stock dropped back on the earnings report that the Street didn't like: in addition the Goldman hearing with congress is knocking the hell out of the market today. Right now AKS is at 17.90. At this level I really like AKS. That's for me, I do not recommend any move with other peoples money.....On 4/15, I also sold a put on AKS. I sold the May $22 put on 10 contracts for $1.25, the stock was at 22.30. If on May 22nd. AKS is below $22 it will be put to me (see assignment in my options dictionary) along with keeping the $1250. If it goes above 22 I keep the premium of $1250 and the deal is over. As I said, it is at $17.90 right now and I am not worried a bit. I've been watching AKS for many years, I have faith. Lets see what happens on May 22nd..............In my last post I mentioned two companies I own but did not sell calls yet. That was U.S. Steel (X) and Sandisk (SNDK). I said X was at $59.20 and SNDK was at $37.33. I didn't want to sell the call yet because I felt they were going to have a little run and I wanted to wait until I could get a higher premium or if the stocks had a good run I could go to a higher strike price to get more capital gains on the stocks. Lets look at X first. That post was written on 4/20. I was looking at the May $60 call. I could have gotten $3.05 on 20 contracts for a premium of $6100. I did not go for this, I wanted to wait for the move I anticipated. On Mon. 4/26 (yesterday) the stock hit $60.95. I really think X can go higher so I decided to sell the May $65 call for $1.90 and take a premium of $1900. Because I feel X can run higher I only sold 10 contracts. I have another 10 to sell if it goes higher. Again I hope I didn't make a mistake because everything in down today and X is down to 57.60, down 2.50 on the day, damn Goldman. I not worried, X is a great company. For this game you need a strong gut. I will let you know what I do with the other 1000 shs...........Let go to SNDK. On 4/20 in the same post I said I was holding back on selling the calls. The stock was at 37.33 and I was thinking about the May $38 call for $1.87, the May $39 for $1.46 or the May $40 for $1.16. Holding back worked out great, SNDK ran up to 44.75. I could not hold back any more because after that run now I was looking for a profit taking pull back. On Mon 4/26 (yesterday) I sold the May $45 call for $1.90 for a premium of $3800. I timed this one perfectly! There is profit taking going on right now and SNDK dropped to 41.90. If this goes down to 40 I might buy more. I really like this stock and many analyst have a price target of 50. I bought SNDK for 35.97. If I get called out on May 22nd. this will be some deal. Lets look at the profit if that happens. My capital gains on the stock will be $18,060 on 2000 shs (paid 35.97 and if called out at 45) plus the premium of $3800. A total of $21,860 (that's a new motorcycle). I know I didn't get called out yet but this is a great mover at this price and I think I will. If I don't, no problem I sell another call. Beginners, stay tuned for a "Class Room" post. I will be writing one soon.
The Coach
Welcome to the “Main Street beats Wall Street”. This blog is for the stock investor/trader with experience in trading options. It can also be helpful for the ones with no experience with options who want to learn how options can be used to pursue your trading goals. As time goes on “Main Street beats Wall Street” will be giving many lessons from “Getting started” to you making your first trade. I also have an e-mail for any questions you might have from a lesson or a trade I posted,coachsjc@gmail.com. On “Main Street beats Wall Street”, I (the Coach) will post every trade I make. In recent years I've had years with over 400 trades. I will not post last years or last month’s trades, or hypothetical trades. ONLY REAL TRADES! I will post a trade when I get into a position and I will post the trade when I get out of that position. Along with my trade I will post my “RISK FACTOR”. The risk of my trade will be rated from 1 to 5, 1 being a low risk trade and 5 being a high risk trade. You will see if I get out making money or get out losing money. No Hoopla. “Main Street beats Wall Street” will show you how the people who live on Main Street throughout this country can be as good as the people who work on Wall Street. This blog is totally free, I am not selling books or tapes. I am only having fun and staying involved in something I love, the stock market. I make my money buying and selling stocks and options. If you put in a little time you too can make money; enough money to change your life forever.
T
