I bought 1000 shares of Facebook (FB) back on May 11th for $119.90. It was about a week after they reported earnings and the stock was moving nicely. As soon as I bought the stock it peaked and came down a bit. On June 27th it was down to $108. This worried me a little because I was down close to $12 on 1000 shares (-$12,000). On June 27th the stock also hit support and headed up and has continued going up heading into earnings being reported tomorrow. Today with the stock at $121.40 I decided to jump out. Not only did I recover my $12,000 but I sold with the stock up $1.50 (+$1500) from where I bought. I decided to sell for a few reasons. One, I was worried holding the stock into earnings. I didn’t want to take a chance on the stock going down with a earnings report and me having to hold the stock a few more months. Also, 1000 shares of a $121 stock is a lot of money! I wanted to free up that money. I love FB but I don’t like the options. The premiums are not what I look for, and that’s the game I’m in. After earnings the stock could easily go up $10, but it can also go down $10. I feel very comfortable getting out with a $1500 profit and moving on. While holding the stock I also brought in a nice amount of premiums ($) from selling Call. Here’s the orders:
Buy 1000 shares FB @ $119.90
Sell 1000 shares FB @ $121.40
Profit +$1500
I made another trade this morning. You might remember in my last Week Ending Report, I had a 50 contract AKS Covered Call which expired 7/22/16. When that Call expired I was assigned on 4000 shares of my 5000 shares. Leaving me with 1000 shares. Well, I just sold that 1000 shares. I no longer own any AK.Steel stock. For now! Here’s the order:
Buy 5000 shares AKS @ $5.48
Assigned on 4000 shares AKS @ $5.50 (+$80)
Sell 1000 shares AKS @ $ 5.58
Profit on the sale of 1000 shares +$100
Any questions on these moves, send me an email.
Steve
The Options Coach