I had another nice week. As my account grows, my trade volume increase will follow. Let’s take a look at this week’s trades.
My first trade was a Covered Call with Weight Watchers (WW). I bought 1000 shares of WW on 3/5/19 and have been selling Calls on these shares since. This was my 3rd Call sold and this week my shares were assigned. In total, I brought in a $950 in premiums. I bought the 1000 shares 2 months ago. This Friday my string of trades with WW ended with assignment. I didn’t make anything on the sale of the stock because I sold the Calls At-the-Money; my Strike price was the same as my purchase price. Without making any money on the stock my total Rate of return was 4.3%. I’ll take that money, stick it in my mattress and move on to the next deals.
Weight Watchers Covered Call
3/5/19 – Buy 1000 Shares WW @ $22.00
5/3/19 – Assigned 1000 Shares WW @ $22.00
Profit 0
4/23/19 – Sell to Open 10 WW 5/3/19 $22.00 C @ 35¢ (+$350)
5/3/19 – Expired 10 WW 5/3/19 $22.00 C
Profit +350
With AMD I sold a Covered Call but was not assigned. This week I’ll sell another Call. Watch for my report on AMD. I plan on doing something a little different. I brought in a $400 premium and I still own my stock.
Advanced Micro Devices
5/1/19 – Sell to Open 10 AMD 5/3/19 $29.50 C @ 40¢ (+400)
5/3/19 – Expired 10 AMD 5/3/19 $29.50 C
Profit +$400
I bought 100 shares of RH on 4/24/19 and did a Grasshopper Trade. I was not assigned so this week I sold another Call, for another Grasshopper Trade. This week I was assigned. I made $250 on the stock sale and another $150 on the premium.
RH Covered Call
4/24/19 – Buy 100 Shares RH @ $105.50
5/3/19 – Assigned 100 Shares RH @ $108.00
Profit +$250
5/2/19 – Sell to Open 1 RH 5/3/19 $108 C @ $1.50 (+$150)
5/3/19 – Expired 1 RH 5/3/19 $108.00 C
Profit +$150
Total weekly Gain $1150
At the close on Friday I was away from my office because I went away for the weekend. I was filled on the selling of a 1 contract Call on Netflix (NFLX). Last week I sold a Call on NFLX and I didn’t want to get assigned. In fact I made an “Adjustment Trade” to avoid it. This week I feel a little different about getting assigned. I’m getting a little worried about how much this market has been moving. All 3 major indices are at their highs. Even though the country is doing very well, I’m feeling we could get a little pullback. If I get assigned on my NFLX shares it might not be the worst thing.
Sell to Open 1 NFLX 5/10/19 $187.50 C @ $3.50 (+$350)
This might be another big week. Let’s watch and see how the market handles the strong Trump Train.
Steve
The Option Coach