It was another great week for me. In fact it was the best week of 2017. As you can see, I’m making more trades because I’m not doing more than 20 contract trades. My new strategy is trying not to have too much in one position. I’ve been doing this a long time and I’m still constantly looking for a better way to lower my risk. I think when I was a little younger I was a bit too risky.
Because of my busy weekend I’m late with this report so I’ll get right into it.
Advanced Micro Devices
With this trade I sold a 20 contract Call. The stock went down to the point that my premium was down to 2¢ so I bought myself out of the position for $40. I have a deal with my broker where I can Buy to Close a position for free if the premium is below 5¢. With the premium so low I figured why hold it a few more days when I could use the money to make more on another trade.
7/12/17- Sell to Open 20 AMD 7/21/17 $15 C @ 25¢ (+$500)
7/18/17 – Buy to Close 20 AMD 7/21/17 $15 C @ 2¢ (-$40)
Profit +$460
RH
I had a Covered Call with RH. The stock moved so much I decided to get out of the entire position. After looking at the profit on the stock and the cost to Buy to Close the option I felt it was better to get out early than to hold till expiration. As in the AMD trade I used the money to make another trade. After jumping out of the entire position. I made nice money on the stock. Paid a lot to close the option but the Covered Call profit was $4185.
7/5/17 – Buy 1500 Shares RH @ $67.36
7/18/17 – Sell 1500 Shares RH @ $72.40 (+$7560)
7/17/17 – Sell to Open 15 RH 7/21/17 $70.00 C @ $1.25 (+$1875)
7/18/17 – Buy to Close 15 RH 7/21/17 $70.00 C @ $3.50 (-$5250)
Profit +$4185
Weight Watchers
This was a simple trade that worked perfectly according to my strategy. Sold a Covered Call. Stock went up. Option expired. I was assigned. Deal over. NICE!
7/17/17 – Buy 1000 Shares WTW @ $36.08
7/21/17 – Assigned 1000 Shares WTW @ $36.50
Profit +$420
7/17/17 – Sell to Open 10 WTW 7/21/17 $36.50 C @ 55¢ (+$550)
7/21/17 – Expired 10 WTW 7/21/17 $36.50 C
Profit +$550
U S Steel
The U S Steel trade worked just like the Weight Watchers trade. Expiration and assignment!
7/12/17 – Buy 1000 Shares X @ $22.80
7/21/17 – Assigned 1000 Shares X @ $23
Profit +$200
7/12/17 – Sell to Open 10 X 7/21/17 $23 C @ 70¢ (+$700)
7/21/17 – Expired 10 X 7/21/17 $23 C
Profit +$700
Micron
With the Micron Covered Call I was not assigned. The Strike Price was $32 and the stock closed at expiration at the Strike Price and I wasn’t assigned. I still own the stock.
7/17/17 – Sell to Open 20 MU 7/21/17 $32 C @ 30¢ (+$600)
7/21/17 – Expired 20 MU 7/21/17 $32 C
Profit +$600
Vipshop
Another trade where the stock went up and I was assigned on the stock involved in a Covered Call.
7/18/17 – Buy 2000 Shares VIPS @ $11.48
7/21/17 – Assigned 2000 Shares VIPS @ $11.50
Profit +$40
7/18/17 – Sell to Open 20 VIPS 7/21/17 $11.50 C @ 30¢ (+$600)
7/21/17 – Expired 20 VIPS 7/21/17 $11.50 C
Profit +$600
Tripadviser
This is the only trade that didn’t work out well. I bought the stock and sold a Call for a Covered Call. The stock went down and I wasn’t assigned. However, the stock is down $2 from where I bought. I made the $400 on the option but I still own the stock $2 lower so right now I’m $2000 in the hole on paper. I still own the stock and have to wait for it to come back up to get a decent premium. This is a great example of why I like using smaller positions and why I like togged assigned to end a trade.
7/19/17 – Sell to Open 10 TRIP 7/21/17 $39.50 C @ 40¢ (+$400)
7/21/17 – Expired 10 TRIP 7/21/17 $39.50 C
Profit +$400
Overall it was a great week. I only didn’t get assigned on the Micron and Tripadviser trades. I’ll take a week like this every week.
Total Weekly Gain +$8155
Steve
The Options Coach