I haven’t been doing much trading as of late. With the pullback this past week the stocks I’m holding are lower than my buy price. It’s very hard to sell Calls on stocks that are lower than your buy-in price because you cannot get a premium that makes a trade worth making without risking assignment at a loss. Right now I’m laying low waiting for the stocks to bounce back. However, I did sell a 2 contract Call on Netflix (NFLX) for a $1000 premium. With the stock being very volatile, on a pull back I decided to play it safe and not risk assignment. When the stock went down I did a “Buy to Close” to get out of the position for a small profit. I sold the Call with a $5 premium and did a “Buy to Close” with the premium at $3.70. This move, to get out of the position, resulted in a $260 profit.
10/8/18 – Sell to Open 2 NFLX 10/12/18 $352.50 C @ $5 (+$1000)
10/10/18 – Buy to Close 2 NFLX 10/12/18 $352.50 C @ $3.70 (-$740.00)
Profit +$260
That was the only trade I made for the week. Let’s see what this coming week brings.
Total Weekly Profit +$260
Steve
The Options Coach