As I mentioned a few times in recent post I’m trying to consolidate my funds by selling stock to increase my options trading. Since the beginning of my basketball season, and before, I’ve been buying stock, mostly 100 shares per stock. I did this to keep my money working while not doing my option trading. Now that basketball is done for the season I want to get back to full time trading and teaching with Main Street beats Wall Street. Last week I did sell 100 shares of RH (RH) making a nice profit. However, I’m still holding shares of Netflix (NFLX), Facebook (FB), PayPal (PYPL), Square (SQ), Apple (AAPL), U.S. Steel (X), General Electric (GE), Nvidia (NVDA), Microsoft (MSFT), Walmart (WMT) and a few shares each of Google (GOOGL) and Amazon (AMZN).
You will not see all of these stocks on the “Active Trades/Current Positions” page. Some have been transferred to another account which is not a margin account. This account I call my “Gift Account.” Some of these stocks I will not sell and they’ll stay in this account for future gifts to younger family members. But some I’ll transfer back to my “Trading Account” and sell to raise trading funds. This “Gift Account” is not a margin account like my “Trading Account.” This is the reason I transfer some stock into that account, so I don’t pay margin interest in the case I hold them for a while, like an entire basketball season. Why pay margin interest in my “Trading Account” if a stock was just sitting there.
I sold the shares of RH because I felt it wasn’t gonna go much higher. I felt I could do better with the money with my trading. With some of the stock listed above I feel a little different. I feel there’s still room to go higher. Most of them have been moving nicely in recent weeks. This is preventing me from selling and causing a trading lull because the funds are tied up. A few of the stocks are a little lower than where I bought. In the next couple of days, or weeks, I’ll be making a decisions if I feel the good movers have peaked and ready to sell, and if I should sell the others with a small loss. Luckily there’s only 1 or 2 of them.
Keep studying and I’ll keep you informed on any moves I make.
Steve
The Options Coach