Results Week Ending 5/25/18

Hi Readers, I have a lot to report today. First, I had my shoulder surgery this Wednesday and I’m home recuperating. This post might take me a while because I’m typing with 1 hand. The typing isn’t too bad but doing 2 things at once, like capitalizing a letter or hitting shift for the following symbols is tough, @$%( )+.

From Wednesday to Thursday things were only uncomfortable having my right wrapped up. There was no pain because they did a nerve block which lasted 24 hours. Then the pain started. And it was bad! The pills they prescribed did nothing so there was no sleep for 2 days. Now 3 days in I’m managing the pain with Advil and it’s feeling ok.

The market has been moving in my favor and what a great week I had. I was stuck not trading or very little trading for a few months because the stocks I’m holding were too low and I couldn’t get a decent premium. The stocks I’m talking about are 500 shares of Square (SQ), 2000 shares of Advanced Micro Devices (AMD) and 2000 shares of RH (RH). Let’s take a look at one at a time and see whats been happening. I bought 2000 of AMD on 6/26/17 at $14.39. In the beginning I was able to sell a few Calls and again in February but after  that the stock dropped to $9. Recently it started moving and now it’s up to $13.54. The premiums are still low but if the stock gets a little high I’ll sell a Call and bail out. Right now I’m down less than a dollar.

I’m in SQ since 3/14/18. I have 500 shares at $54.70. It’d been down and it was all the way down to $44. Ten dollars below where I bought so I wasn’t able to sell any Calls. It came back up and I was able to sell some Calls the last few weeks. With the stock above where I bought, this Monday I sold 5 contracts of the $57 Calls for a $450 premium. The stock closed the week at $55.77 and I wasn’t assigned. The stock is now $1 above where I bought so I’ll get another Call sold this week.

5/21/18 – Sell to Open 5 SQ 5/25/18 $57.00 C @ 90¢ (+$450)

5/25/18 – Expired 5 SQ 5/25/18 $57.00 C

 Profit +$450

 

The big story is from RH. I’ve had 2000 shares since I bought them on 1/23/18 and 1/31/18. All of my shares were bought between $101.50 and $104.25. Early on 1/23 I bought 1000 shares at $102.75. Later that day, with the stock on the move, I bought another 500 shares at $104.25. On 1/31, with the stock very volatile, I bought another 500 shares at $101.50. I did sell Calls on these shares and brought in money, however, I was not assigned because the stock kept moving down. In late March the stock was all the way down to $75. At this point I was very worried. I had 2000 shares and I was down over $25. I even received a few emails from readers asking how long I was gonna hang in. As I said many times, you really need to know your risk tolerance and sometimes you need a strong stomach. I was worried but I felt and believed, after earnings, the stock would move in my favor. On March 26th the earnings were great and the stock jumped over $15. Still not to where I bought but I was back in the game. It’s been moving nicely and this Friday closed at $104.29. I was able to sell Calls on all 2000 shares last week. I brought in some nice premiums and had a great week. This week I sold more Calls, only this week I was assigned on 1500 shares so I had an even better week than last. I am extremely happy and my account is looking very good for the year. It was looking bad for a while but with RH returning up my shoulder is feeling better. Below are all the trades. The buying of the stock, the assignment of the stock and the expiration of this week’s Call Options.

 

1/23/18 – Buy 1000 Shares RH @ $102.75

5/25/18 – Assigned 1000 Shares RH @ $104.00

 Profit +$1250

5/21/18 – Sell to Open 10 RH 5/25/18 $104.00 C @ $2.25 (+$2250)

5/25/18 – Expired 10 RH 5/25/18 $104.00 C

Profit +$2250

1/31/18 – Buy 500 Shares RH @ $101.50

5/25/18 – Assigned 500 Shares RH @ $104.00

 Profit +$1250

5/21/18 – Sell to Open 5 RH 5/25/18 $104.00 C @ $2.25 (+$1125)

5/25/18 – Expired 5 RH 5/25/18 $104.00 C

 Profit +$1125

 

The above Calls were with a $104 Strike Price. They were assigned. Below was a $105 Call because I bought the 500 shares at $104.25 and I was not assigned on these 500 shares because the stock closed at $104.29. I still own the 500 shares.

5/21/18 – Sell to Open 5 RH 5/25/18 $105.00 C @ $2.00 (+$1000)

5/25/18 – Expired 5 RH 5/25/18 $105.00 C

 Profit +$1000

 

Last week was a good week for premiums, $4000. This week was better because I brought in great premiums but I was also assigned on 1500 shares so this week’s profit includes the profit on the stock sales, a whopping $7325.

Right now I’m in a great position! This week I’ll try to sell Calls on my 500 shares of SQ, my 500 shares of RH and hopefully get something started with AMD.

Also you very dedicated readers know I have 300 shares of Netflix. I have 100 shares in my Trading account being held for my Gift Account. Plus, I bought another 200 shares which are also in my Trading Account. I bought 100 shares for my Gift Account on 10/11/17 for $194.75. The other 200 shares I bought for the Trading Account, 100 on 4/16/18 for $313.10 and 100 on 4/17/18 for $333.85. The stock has been moving crazy and closed this Friday at $351.29. These 300 shares of Netflix also has my account looking very nice. I still have to decide what I want to do with these 300 shares. 100 are for my Gift Account but the other 200 I have to see if I want to hold or sell to give me more trading funds.

 

Total Weekly Gain +$7325 

 

If you have any questions on this week’s trades, send me an email.

People ask me all the time, “why do you do this blog/website for free?” My answer is, if I can bring this kind of money in why do I have to charge people? I would rather help someone get started and get on track for free. I make enough money trading. Keep studying. Thank you for reading.

From this week’s profit I bought 200 shares of GE to be held in my Gift Account.

 

Steve

The Options Coach