Last week I reported that my high school basketball team won the NYC Catholic High School Athletic Association “A” division semi-final playoff game. This win put us in the NYC A division city championship game. We played a very tough Fordham Prep team from the Bronx. We were winning most of the 1st half and went into halftime with it being a few point game. The 2nd half the lead went back and forth and we ended up losing in the final minute of the game. We lost by 4 points. Winning the NYC A division championship would have been very nice but it was a great season and I’m very proud of our team. Being in a very tough league, we went a lot further than most thought we would.
Basketball is done and it’s time to make some money. Basketball is demanding, and if done right, eats up a lot of your time. I didn’t make any trades the entire season. On February 20th I did buy 1000 shares of CLF but got out of that position a week later at the same price I bought in.
When basketball started I knew I wouldn’t be trading. With the money I had in my account I bought some stock that I thought would hold their own and make me some money while I wasn’t trading options. I bought 100 shares of a bunch of stocks and built a little mutual fund with the hope my account would go up while not trading. It worked pretty well for me. Among the stocks I own are 100 shares each of NFLX, APPL, MSFT, WMT, RH, MU, SQ, PYPL and 200 shares of FB, X and GE.
Today I made my first options trade of the year. I was in and out of the trade in about an hour and make $300. I sold 10 Naked contracts of the Weight Watchers (WTW) $22.00 Calls for .85 (+$850). This Call was to expire this coming Friday.
Sell to Open 10 WTW 3/8/19 $22.00 C @.85 (+$850)
When I sold the Call the stock was about $22.25. The stock started down and after holding the position for 1 hour the stock came down to $21.75. When I sold the Call the premium was .85. When the stock dropped the premium dropped to .55. I decided to do a “Buy to Close” and get out of the position. I sold the 10 contract Call for .85 bringing in $850 and bought the Call back for .55, $550. This gave me a $300 profit in 1 hour. I’ll take that and put it in my mattress for the first time of the year.
Buy to Close 10 WTW 3/8/19 $22.00 C @ .55 (-$550)
Profit +$300
It feels good to be back to the trading. Not sure how much I’ll be doing before I dump some go the stock I’m holding. The stocks I’m holding have been doing pretty well so I’ll watch and see. The more stock I sell the more money I have to trade options, and get back into the game I love.
Email me any questions!
Steve
The Options Coach
Congratulations
Thank you Marie! It’s nice to be back into the market. Slowly but surely I’ll be back full force.