The “Trump Train” continues to roll and it helped me have another very nice week. On a big down day early in the week I jumped out all my option positions. I had 3 Covered Calls expiring on the 27th and I bought my way out keeping only the stock. As the market bounced back I did get back into 1 position with RH which expired and I was’t assigned. The rest of the stock I left without options attached with the hope of getting some stock gains. Let’s take a look.
With Advanced Micro Devices (AMD) I did a “Buy to Close” on a LEAP and locked in a $1775 profit. AMD pulled back a little. I’m waiting for it to gain a point or 2 before I sell another Call.
Advanced Micro Devices
9/1/17 – Sell to Open 25 AMD 1/19/18 $15.00 C @ $1.20 ($3000)
10/25/17 – Buy to Close 25 AMD 1/19/17 $15 C @ 49¢ (-$1225)
Profit $1775
With Weight Watchers (WTW) I did an At-the-Money Buy-Write. On the market pullback I did a Buy to Close. I was hoping to get another Call sold on the market bounce but I was’t able to. With this position it would have been better if I didn’t exit. I did profit $550 but if I held until expiration I would have made $900.
Weight Watchers
10/23/17 – Sell to Open 10 WTW 10/27/17 $45.50 C @ 90¢ (+$900)
10/25/17 – Buy to Close 10 WTW 10/27/17 $45.50 C @ 35¢ (-$350)
Profit +$550
With RH I had a Call sold and I also did a Buy to Close on the market pullback. This move worked better than with WTW. With RH I was able to get another Call sold. Getting out of the first Call I made a profit of $650.
RH
10/20/17 – Sell to Open 10 RH 10/27/17 $85.00 C @ $1.25 (+$1250)
10/25/17 – Buy to Close 10 RH 10/27/17 $85.00 C @ 60¢ (-$600)
Profit +$650
As you see above, the first Call had a Strike Price of $85. When the market bounced I was able to get a nice 2 day premium of 90¢ but the good part of this trade is I got a nice premium with a higher Strike Price. With the second Call the Strike was $87. I did not get assigned because the stock closed at $86.64. It ended with me making the $650 on the first Call and $900 on this Call for a total of $1550. If I kept the first Call until expiration I would have made $1250 premium and I would have been assigned at $85. The stock is now at $86.64 and I hope it goes higher on Monday
10/25/17 – Sell to Open 10 RH 10/27/17 $87.00 C @ 90¢ (+$900)
10/27/17 – Expired 10 RH 10/27/17 $87.00 C
Profit +$900
Total Weekly Gain +$3875
Have a great weekend!
Steve
The Options Coach