I am finally home from vacation! I was in a very beautiful place but difficult to get to, well, from New York anyway. And it was more difficult getting home! I was on a lake in Wisconsin. It’s called Lake Nebagamon. From NYC you have to fly to Duluth thru Chicago or Minneapolis. We went thru Chicago. Once you’re in Duluth there’s about another 1 hour drive. We got there uneventful but coming home was another story. We got on the small plane in Duluth at 6:30pm on Monday to start our trek home. The plane had a computer problem so they made us get off while they wait for a mechanic to show up. It seemed like he had to drive in from Minneapolis! By the time he got there, and decided he couldn’t fix the problem, it was 10:30pm. United Airlines put us up in a hotel but the next flight out was 6:30am, Tuesday. Up at 4:30 and back to the airport. This plane took off late because they had catering problems. I wasn’t afraid of getting to Chicago late because there we had a 4 hour lay-over at O’Hare. The second leg took off from Chicago uneventful and arrived in Newark just in time for me to get to Fiore’s Pizza to get some paperwork done and pay the guys. There’s no place like home!
Having been on vacation I’m late with my week ending results. It was a very nice week! This week will not be as profitable.
I’m gonna be a little quick because I have to get to PT for my shoulder. I’ve been away so I really need some stretching. I have a few trades to report, I’ll start with VF Corp.
VF Corp
With VFC I did a simple Covered Call. I bought 700 shares at $88.25 and sold (7) $90 Calls with a premium of $1.10 for $770. The stock went above my Strike Price and I was assigned. Simple but very profitable! I made $1225 on the stock sale and I keep the $770 premium for a total gain of $1995 on the Covered Call. I know buying 700 shares of a $88.25 stock is not cheap but once you’re a trader and have an account with a decent amount of money in it, this is the kind of trade you want to look for. VFC received a big upgrade and I jumped on it. This also happens with lower priced stocks.
7/15/18 – Buy 700 Shares VFC @ $88.25
7/20/18 – Assigned 700 Shares VFC @ $90.00
Profit +$1225
7/15/18 – Sell to Open 7 VFC 7/20/18 $90.00 C @ $1.10 (+$770)
7/20/18 – Expired 7 VFC 7/20/18 $90.00 C
Profit +$770
Netflix
With NFLX I sold a 2 contract Call against 200 shares I’ve been holding. It worked out great but I didn’t realize earnings were due out the same week. The Call had a premium of $1500 and I was not assigned. “The Street” didn’t like the earnings and the stock took a big drop. Now I’m holding NFLX below where I bought in but I’m not worried about this stock. Not yet!
7/15/18 – Sell to Open 2 NFLX 7/20/18 $425.00 C @ $1.50 (+$1500)
7/20/18 – Expired 2 NFXL 7/20/18 $425.00 C
Profit +$1500
RH
Last week I bought 100 shares of RH and sold a 1 contract Call just to be in the game a little. I want to lay low with this stock for a little bit. I was not assigned last week and sold another Call this week. With this deal I keep the modest $100 premium.
7/19/18 – Sell to Open 1 RH 7/20/18 $139.00 C @ $1.00 (+$100)
7/20/18 – Expired 1 RH 7/20/18 $139.00 C
Profit +$100
Total Weekly Gain $3595
On Monday in the post reporting the deal with Micron I mentioned I had a gain of over $5000 for my week ending result. This was a typo. I meant to type “over $3000.” Sorry!
I’m also sorry for the late report. If you have any question send me an email.
Steve
The Options Coach