I had a really nice week! It’s been a while since I had a week like this because some of my stocks, like RH, Netflix and Square, have pulled back and they were lower than where I bought, and I couldn’t get decent premiums. Well the stocks are back up to the area where I bought and I was able to get some work done. It couldn’t have come at a better time because I sitting on a beach on Isla Mujeres. Isla Mujeres is a beautiful small island off the cost of Cancun. I really love it here! I left NYC on May 9th but I got in all of this week’s trades before I left. It’s nice when things go well and you don’t have to be glued to the computer. This Friday’s expiration I had trades come to an end with RH, Nvidia (NVDA), Netflix (NFLX), and Square (SQ). Let’s take a look at each one.
RH
I’ve been holding 2000 shares of RH for a long time. I’m in all the shares between $101.50 and $104.25. The stock went all the way down to the low 80’s. It was nerve racking but the stock returned back up and on 5/4 I was able to get my first Call sold in a while. I sold 20 RH $105 Calls to expire this past Friday. I received a premium of $1.35 for a total of $2700. The stock never hit my Strike Price so I still own the shares and the Call expired with me keeping the $2700.
5/4/18 – Sell to Open 20 RH 5/11/18 $105.00 C @ $1.35 (+$2700)
5/11/18 – Expired 20 RH 5/11/18 $105.00 C
Profit +$2700
NVDA
I owned 100 shares of NVDA since 4/16. If you remember I bought them at $229.50 to sell a 1 contract Call. I did it to show readers how to make a trade with a small amount of stock and make some money. It wasn’t a great example of a Grasshopper trade because it’s a very expensive stock. At that time I wasn’t assigned and on 5/4 I sold another Call. NVDA was heading into earnings last week and I wanted to take advantage of the high premiums. The stock made a big move and I was assigned. Owning the stock at $229.50, I sold the $245 Call for a $525 premium. I was assigned so I keep the $525 premium plus I made $1600 on the stock sale.
5/4/18 – Sell to Open 1 NVDA 5/11/18 $245.00 C @ $5.25 (+$525)
5/11/18 – Expired 1 NVDA 5/11/18 $245.00 C
Profit +$525
4/16/18 – Buy 100 Shares NVDA @ $229.50
5/11/18 – Assigned 100 Shares NVDA @ $245.00
Profit +$1600
NFLX
I also bought 100 shares of NFLX to make a Grasshopper trade, than I bought another 100 shares. On 5/7 I sold 2 contracts of the NFLX 5/11 $337.50 Calls for a premium of $1.50. I was not assigned but I keep the $300 premium. I’ll try to sell another Call this week while on vacation.
5/7/18 – Sell to Open 2 NFLX 5/11/18 $337.50 C @ $1.50 (+$300)
5/11/18 – Expired 2 NFLX 5/11/18 $337.50 C
Profit +$300
Square
With SQ I owned 500 shares since 3/14 at $54.70. I sold some Calls but than it had a pullback. The stock is back up so I was able to get a Call sold. I sold 5 contracts of the SQ $55 Call for 55¢. The premium was $250. Not big but I just wanted to start bringing in some money since it was down for a while. The stock continued up but closed a little short of my Strike Price and I wasn’t assigned. The stock closed the week at $54.73.
5/8/18 – Sell to Open 5 SQ 5/11/18 $55.00 C @ 55¢ (+$250)
5/11/18 – Expired 5 SQ 5/11/18 $55.00 C
Profit +$250
I’m glad I got this report done but I really have to get back to the beach. If there’s some mistakes in my typing, I’m sorry! I did it really quick lol.
Total Weekly Gain $5375
This week’s results will help me enjoy my time in Mexico. Let’s see what I can do next week.
Steve
The Options Coach