I just sold my Amarin (AMRN) Long Call for a 25% gain.
A little under 2 weeks ago I bought a 5 contract Call on AMRN. The stock was in a “W” pattern, coming off support, and I felt strongly I could make a little money here. When I bought the Call the stock was at $14.80 and my premium was $3.20. In the post reporting the trade, which you can see here, I said I wanted to make a $1 on the premium and hold the option about 2 weeks. This morning the stock was up, and this being a Long Option, I decided to take some profit if I could get the premium I wanted. I was in for about 12 days and I saw an opportunity to sell my Call for $4. I want $4.20 for a $1 gain but looking at the candlestick chart I decided to grab the 25% gain. Take a look at the orders and results below.
10/10/19 – Buy to Open 5 AMRN 1/17/20 $15.00 C @ $3.20 ($1600)
10/22/19 – Sell to Close 5 AMRN 1/17/20 $15.00 C @ $4.00 ($2000)
Profit +$400
I bought the Call for $3.20 and sold for $4. I paid a total of $1600 and sold for $2000. That’s a $400 profit on a $1600 investment. You know I’m into Rate of Return. That’s 25% is 12 days! I’ll take it! In the mattress it goes!
Buying options is a dangerous game! For protection I bought a 1/17/20 Call, however, I knew I wanted to hold for about 2 weeks. You never know what the market’s gonna do. If it pulled back it might take months for a $15 stock to recover. If that happened, and I owned the $17 Call with a November Expiration Date, this might have been a loser. Since I sold my option, a few minutes ago, the stock is already pulling back. Yes this is only a $400 gain, but I didn’t lose money! And made 25% on my investment. If I could do this a few times a week I would. The Stock options game must be done with a lot of discipline and little greed. I will nickel and dime Wall Street to death. The odds are against us, so this is what I do to make sure Main Street beats Wall Street. You can go with the many scam artist out there, and pay them a subscription fee, or you can learn for free right here.
Successful trading,
Steve
The Options Coach