Again, I only made 1 trade this week. I’m getting back into the game “slow and steady, steady and slow.”
Last week was a short week because of Thanksgiving. I couldn’t get a trade done on Monday the 21st but I did get one made on Tuesday the 22nd. Since it was a short week the premiums were a little low for the Friday Expiration Date. Instead of going with the short week and the low premium I made my Expiration Date Friday, Dec 2nd, yesterday.
I sold 1 contract of the LULU 12/2/22 $362.50 Call for a premium of $5 for $500. I already owned the shares because I did a Covered Call the week before and was not assigned. This week I was assigned so this trade with LULU is over. I keep the $500 premium and I made $650 on the stock sale for a total of $1150.
11/14/22 – Buy 100 Shares LULU @ $356.00
12/2/22 – Assigned 100 Shares LULU @ $562.50
Profit +$650
11/22/22 – Sell to Open 1 LULU 12/2/22 $362.50 C @ $5.00 (+$500)
12/2/22 – Expired 1 LULU 12/2/22 $362/50 C
Profit +$500
I bought these shares the week before on November 14th and sold a Call. I was not assigned so I sold another Call expiring yesterday. With the first Call I made a premium of $460. With this week’s trade I made $1150. In the 3 weeks I made a total of $1610 with LULU. This is a Return on Investment of 4.5% for the 3 weeks. I am very happy with this return.
Total Weekly Gain +$1150
With this week’s trade I had a Strike Price of $362.50. Yesterday the stock closed at $385.99. With the big jump in the stock I have a large Opportunity Lost. My gain was $1150 but if I hadn’t sold the Option I would be up $2999. My Opportunity Lost is $1849; the $2999 minus what I made, $1150. Most readers know how I feel about an Opportunity Lost, I really don’t care! In the long run I feel I can make more being an options trader as opposed to just holding stock.
I am now out of my LULU position so I’m ready to find another deal on Monday morning.
If you have any questions on this trade send me an email.
Successful trading,
Steve
The Options Coach