This was another very nice week for me. I only made 2 trades but they worked out nicely. One of the trades I actually made last week with an Expiration Date of this week. Last Friday 3/11, I sold 15 contracts of the FB 3/18/16 $112 Calls and I received a $.60 premium for a total of $600. That Call expired yesterday, 3/18. I bought the 1500 shares of FB in February and sold a number of Calls since. I bought 1000 shares at $111.50 on 2/3 and 500 shares at $100.50 on 2/17. With these most resent Calls I sold the $112 Calls and the stock closed on Friday at $111.45. What made this trade so nice is I didn’t care if I got assigned or not. That’s always a nice feeling. Yesterday the stock went above the Strike Price of $112 briefly but backed off a little before the close. Since this option expired worthless I keep the entire $600.
Facebook Option Expired
Profit +$600
For my second trade I sold 10 contracts of the NFLX 3/18/16 $101 Calls and got a premium of $1.50 for $1500. This trade I bought my way out with a half hour left to the trading week. NFLX was moving a little above and a little below the Strike of $101 for most of Friday. When it was at $100.85 the premium was at $.08. To get out it cost me $80 and the deal was over. I could have just waited until the trading day was over but I felt it was going to jump above the Strike Price. If that happen, it wouldn’t have been a big deal; I would have kept the entire premium of $1500 and lose the stock at $101. I decided to buy out for the $80 and at closing the stock was up to $101.12. If I didn’t buy the option back I would have been assigned. The way it worked out, I keep the stock and keep the premium, minus $80. Here’s the buy order:
Buy to Close 10 NFLX 3/18/16 $101 C @ $.08 (-$80)
Profit +$1420
With this NFLX option I received a premium of $1500 on a stock I paid $97.95. The investment for the 1000 shares was $97,950. That’s over a 1% return in one week. Make sure you read my strategy “1Week/1%.”
Not a bad week! With Facebook +$600 and Netflix +$1420
Total weekly profit +$2020
Money in the mattress
If you have any questions on the options I bought or sold this week please email me.
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Steve
The Options Coach