My last 6 weeks have been more profitable, but this was still a very nice week.
I only have 2 moves to report but I’m still happy I locked in $1000 for the week. The stock market and trading options can be very dangerous. However, if done with a lot of discipline, with a “slow and steady, steady and slow” attitude, and not a “get rick quick” attitude, being a trader/investor can be very profitable.
I’m having a phenomenal year. I’ll be writing about my year to date (YTD) results right after Thanksgiving. I want to get through November, and make a plan for December, before I post that report.
Right now I’m writing from Worcester, MA. For you who don’t know, my wife is a stand comedian. She’s performing in one of the top comedy clubs in the area. I came along for the ride, and they gave me a little chauffeur’s fee lol. We have a beautiful room in the Hilton to make it a nice little vacation. She had one show Friday night and 2 tonight, Saturday night. Tonight as she’s performing I’ll put a little time in a nice cigar bar. Google her and try to make a show if she’s in your area, Irene Bremis.
OK, my trades. I got out of one of my Dish Network (DISH) positions. I bought 1000 shares on 9/16/19 and I also bought 10 contracts of an option. The stock really didn’t move the way I expected so I decided to free up the cash. I might leave it free for the month of December getting ready for the new year. I did hold on to the option in case the stock makes the move I expected. As for the stock I got out with a small $100 profit. Hey, it’s not a loss!
9/16/19 – Buy 1000 Shares DISH @ $35.80
11/18/19 – Sell 1000 Shares DISH @ $35.90
Profit +$100
The only other trade I had this week was a Covered Call with Square (SQ). I sold a Naked Call on 11/15/19. I stayed Naked until the stock moved up to my Strike Price of $65. I bought the stock at $64.90 to cover the Call. The stock continued up above my Strike and I was assigned. Not only did I get assigned but the stock went all the way up to $67.75. I don’t look at this as an Opportunity Lost, but it actually is. The reason I don’t look at is as such is because I sold the Call before I bought the stock. A true Opportunity Lost is when you own the stock and you lose the upside potential above the Strike Price because of a Call you sold against your stock. Here I bought the stock because I was about to go In-the-Money on a Naked Call. It was for protection. The bottom line is if I owned the stock and never sold a Call I would have made a lot more money. As most readers know I never let this bother me. Please read my page on Opportunity Lost.
11/15/19 – Sell to Open 10 SQ 11/22/19 $65.00 C @ 80¢ (+$800)
11/22/19 – Expired 10 SQ 11/22/19 $65.00 C
Profit +$800
11/18/19 – Buy 1000 Shares SQ @ $64.90
11/22/19 Assigned 1000 Shares SQ @ $65.00
Profit +$100
Total Weekly Gain $1000
Take a look at PagSeguro Digital (PAGS). The stock took a beating after earnings, down $6. I feel it’s going to continue up. Through earnings I owned a 10 contract LEAPS. while it was down I bought another 10 contracts of the same LEAPS. I bought the extra contracts on Thursday and the stock was up, and yesterday the stock was up another $1.76 (5.68%). I’m looking to get $2000 out of this trade by the 1st or 2nd week in January. It would be a nice start to a new year.
Watch for my new Wealth Builder section. Hoping to have it done before Thanksgiving. The holdings in my 3 portfolios will make me a lot of money. It will be “slow and steady, steady and slow” but I believe it will make me a great Rate of Return over time. I’m putting in too much time for it not to.
Have a great rest of the weekend!
Successful trading,
Steve
The Options Coach