Hello Investors,
Today we added another 50 shares of U.S. Steel (X) and sold a covered call against our stock. This makes 50 of those shares “naked” and we discussed the risk/reward of such a position fully today.
Bought 50 shares at 36.90
Bought to close our current 45.00 strike covered call and rolled it up to 50.00 strike as follows:
Bought to close: X March 21st (monthly) 45.00 strike call (ratio of 1)
Sell to open: X March 21st (monthly) 50.00 strike call (ratio of 2)
Debit: 0.32
This leaves us with 150 shares owned and 2 short calls at the 50 strike after adjustments.
Have a great week!