7/13 Options Action Web Extra $X

scott answers a viewer email asking how to lower the cost basis on 100shares of US Steel.. heres the video, US Steel video . tough spot to be in, based on the tone of the email id assume that the stock was purchased at a higher cost.. with only 100 shares it does not give you alot of options on what to do, scott recommends selling a covered call, but because you only have 100shares, ie a 1lot option sale, you have to go closer to ATM to make it worthwhile after commissions.. so this sale tops you out at 22...ok if you bought lower than that. also viewer seems like she wants to hold this stock, so only alternative i would have is to instead buy an AUG ratio spread.. the Aug 21/22 1x2 call ratio spread (buy one 21, sell two 22's). looks like you can get this for small credit... this ratio profits from 21-23 giving you the possibility of a little bit more upside (up to 23) vs getting capped at 22.  other possibility is if you have a better stock to commit $2100 to.. instead of trying to milk 100bucks a month on covered calls hoping to not get called away..just sell it and move on and look for a better opportunity.

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