Hi All, I’m back on the road! Now I’m just outside of Boston. My wife Irene’s family lives in Boston and she was going for a visit. I decided to tag along and get some work done in New England. I guess I doing a Stephen King thing. With a new basketball season coming right after the summer I decided to lock myself in a hotel room to develop a new offense; while I work on the market, of course! While Irene visits her family I’m in a beautiful hotel in Woburn, Massachusetts looking out at trees. Perfect to get some work done! When I leave here on Thursday I expect to have my offense complete. I think this is what Mr King does when he wants to get into a new book.
Let’s take a look at what I did in the market last week before I get into my basketball work.
It could have been a pretty good week if I never got involved in Advanced Micro Devices (AMD). AMD is a long story and I doubt anyone wants to read about how I got to where I am. However, if anyone has a question you can email me. The bottom line is I’ve been involved in a “Roll Out” and this week I put an end to carrying the position. The last trade in the “Roll Out” was expiring this past Friday. On Monday I did a “Buy to Close” the position and was looking to sell another Call to continue the “Roll Out.” I waited a day or 2, but the stock did not move to where I liked a new “Sell to Open.” Then earnings came out and the stock took off and it’s been running ever since, against what the NASDAQ was doing. I decided to throw in the towel and put the money to work elsewhere. Below you can take a look at all the trades of the “Roll Out.” I ended up taking a $3000 hit! I’m just gonna move on and chalk it up as a lose. This trade is over!
Advanced Micro Devices
5/30/18 – Sell to Open 20 AMD 6/8/18 $14.00 C @ 20¢ (+$400)
6/8/18 – Buy to Close 20 AMD 6/8/18 $14.00 C @ $1.25 (-$2500)
6/8/18 – Sell to Open 20 AMD 7/27/18 $15.00 C @ $1.35 (+2700)
7/23/18 – Buy to Close 20 AMD 7/27/18 $15.00 C @ $1.80 (-$3600)
Loss -$3000
RH
RH was a simple Covered Call. I owned 100 shares and I sold a 1 contract Call. I didn’t get assigned and I keep the $200 premium.
7/23/18 – Sell to Open 1 RH 7/27/18 $139.00 C @ $2 (+$200)
7/27/18 – Expired 1 RH 7/27/18 $139.00 C
Profit +$200
Micron
When I got out of AMD I bought 1000 shares of Micron (MU) at $52.50. When the stock was at $54.35 I sold a 10 contract Call for a premium of $1 for $1000. The stock stayed below my Strike Price of $54.50. I keep my stock and I keep the $1000 premium. The trade worked out nicely.
7/23/18 – Sell to Open 10 MU 7/27/18 $54.50 C @ $1 (+$1000)
7/27/18 – Expired 10 MU 7/27/18 $54.50 C
Profit +$1000
Total Weekly Loss -$1800
As you see, if not for the AMD mess it would have been a nice week. O well! This is all part of the game we play. Let’s see what I can make happen this week with the NASDAQ falling apart. lol. I might be low on trades for a little while with NFLX and FB crashing.
Any questions, send an email.
Steve
The Options Coach