As I said in a post earlier in the week, I decided to limit my trades until the end of the year. I want to hold on to my gains and start a new year with a clean slate. This week I have 1 trade to report. I sold a Covered Call on previously owned stock. I sold 50 contracts against 5000 shares of Yelp. I received a premium of $.40 for $2000. After selling the Call I ended up buying to close the position while the stock was in a dip. I was able to buy the Call back for $.15 ($750). I didn’t want to hold until expiration because of my Strike Price. I bought the stock at $40.86 and I had a $39 Strike Price. If the stock came back and went above $39 I could have been assigned and I would have lost money on the stock sale with assignment. For this reason I got out when I could with a nice 2 day profit. Here’s the “Sell to Open” and the “Buy to Close” to see the profit.
Sell to Open 50 YELP 12/2/16 $30 C @ $.40 (+$2000)
Buy to Close 50 YELP 12/2/16 $39 C @ $.15 (-$750)
Profit $1250
I’m going on vacation this Tuesday for my wife’s birthday. I’m gonna spend a little of this year’s gains on a 10 day trip to Costa Rica. You can follow my trip on my personal Facebook page, I’ll be posting pictures. I will have my computer with me to follow the market. Another great reason to become a trader, you can do a little work and make money while on vacation. I’ll also be checking my email if you want to send me a note.
Total Weekly Gain $1250
Have a great weekend!
Steve
The Options Coach