Last week I wrote a post saying the frequency of my trade would be greatly reduced. You might have noticed I did not make a trade last week and this week I only had one Covered Call come to an end. The main reason for the drop in trades is because of my schedule. I’m especially busy right now because of my coaching schedule, that’s basketball coaching! Also some of my positions are lower than where I bought so I’m waiting for the stocks to get to the price where I can get a good premium. As far as basketball coaching, I love it! It gives me so much joy being in the gym teaching the kids. As you know it’s something I’ve loved my entire life and it’s great to be back. I feel very blessed to be pretty comfortable financial where I can do what I truly love. However, the world being the way it is, I must keep some money coming in or I’ll motor thru my savings. I still enjoy some of the fine things in life like traveling, having a car that gets me where I want to go, a nice home, dining out, etc. So, I will continue trading and running Fiore’s Pizza to curtail the pot from draining.
I mentioned I only had one trade this week. It was only one, but it was a good one! On 7/25/17 I bought 1000 shares of Weight Watchers at $38.50. I sold Calls for a few weeks but was never assigned because the stock dropped back a little. With the stock a few dollars below where I bought, the earnings came out last Thursday. With the stock a few dollars lower I didn’t get a Call sold on the shares. This is why I didn’t have any trades last week. Lucky for me the earnings came out great and the stock has been running since. The earnings came out after the close on Thursday, and Friday the stock went up $8. With the stock at $43.25 I sold a $44 Call with four days to expiration. I figured the stock would pull back a bit. It didn’t and the stock closed at $47.98 yesterday. I was assigned at $44 and had a bit of an Opportunity Lost. When the stock was running thru my Strike Price and I new I’d be assigned, I bought another 1000 shares so I would still get the stock gain. At that point I owned 2000 shares and only had 10 contracts sold. Even with the $44 assignment I still made $5.50 on the 1000 shares of the stock and brought in $600 with the premium. Not a bad one week trade!
Weight Watchers Covered Call
7/25/17 – Buy 1000 Shares WTW @ $38.50
8/11/17 – Assigned 1000 Shares WTW @ $44
Profit +$5500
8/7/17 – Sell to Open 10 WTW 8/11/17 $44.00 C @ 60¢ (+$600)
8/11/17 – Expired 10 WTW 8/11/17 $44.00 C
Profit +$600
Total Weekly Gain $6100
Have a great weekend!
Steve
The Options Coach