I had another very busy weekend with basketball and family so getting to my work on Main Street beats Wall Street was near impossible. As I plan my Monday morning and my week ahead I’ll get my weekly results post done.
I also had another very good week with my trading as the “Trump Train” shows no signs of derailment. For Grasshoppers, this would be a great time to learn how to make some money but not a great time to learn how to take a hit. If you’re a new trader you must understand, it’s not always like this! Normally a trader will experience some pain along the way. Since Trump got into office the pain has been minimal. If you look at my page “Trade History 2017” you will see what I’m talking about. It’s not always like this.
Let’s take a look at the trades that ended for me this week.
Micron
The first trade was a stock trade with no option involved. Sometimes, when the market is moving like this it’s better to just own the stock and not attach an option to it.
10/2/17 – Buy 1000 Shares MU @ $39.85
10/16/17 – Sell 1000 Shares MU @ $41.30
Profit +$1450
RH
On 10/16/17 I bought 1000 shares of RH and sold a Call. the next day this volatile stock took a dip and I did a “Buy to Close”
keeping over half my premium I received. If I can get out in one day with this result I like to do so.
10/16/17 – Sell to Open 10 RH 10/20/17 $82.00 C @ $1.25 (+$1250)
10/17/17 – Buy to Close 10 RH 10/20/17 $82.00 C @ 60¢ (-$600)
Profit +$650
Jetblue
Back on 10/3/17 I bought 1000 shares of Jetblue (JBLU) and sold an option to make a Covered Call. This is not one of my normal trades because JBLU does not have weekly options. There was two week until expiration so I made the trade. I was really hoping I would get assigned to end the deal and I was.
10/3/17 – Buy 1000 Shares JBLU @ $19.69
10/20/17 – Assigned 1000 Shares JBLU @ $20.00
Profit +$310
10/3/17 – Sell to Open 10 JBLU 10/20/17 $20.00 C @ 45¢ (+$450)
10/20/17 – Expired 10 JBLU 10/20/17 $20 C
Profit $450
Applied Materials
On a report of extra heavy option activity I bought 1000 shares of Applied Materials (AMAT) and sold a Call. As anticipated the stock went up and I was assigned.
10/12/17 – Buy 1000 Shares AMAT @ $54.05
10/20/17 – Assigned 1000 Shares AMAT @ $54.50
Profit +$450
10/12/17 – Sell to Open 10 AMAT 10/20/17 $54.50 C @ 85¢ (+$850)
10/20/17 – Expired 10 AMAT 10/20/17 $54.50 C
Profit $850
Arconic
On another stock with heavy option activity, Arconic, I did a Covered Call. This one I was not assigned. The option expired so I keep the premium of $420 and I still own the 1000 shares. Hopefully it moved up this week and I’ll make a decision to just sell the stock or sell another Call. I bought the stock at $27.52 and on Friday it closed at $27.17
10/12/17 – Sell to Open 10 ARNC 10/20/17 $28 C @ 42¢ (+$420)
10/20/17 – Expired 10 ARNC 10/20/17 $28 C
Profit +$420
Total Weekly Gain $4580
As I mentioned in my Micron section above, with the market moving like it is, sometimes it’s better to just buy the stock and make the capital gains. Most of the times I’m sticking to my strategy and selling the Call and excepting the Opportunity Lost. Even with this market, stocks do go up and down. So I am experiencing all situations. Sometimes I get assigned with an Opportunity Lost and other times the stock closes below the Strike Price and I don’t get assigned. Or I get assigned right around the money and the deal ends without an Opportunity Lost. You have to pick your strategy with the stock you choose to work with.
Let’s have another great week!
Steve
The Options Coach