In the title of this post I mentioned trades with Jabil and Square. I also bought 1000 shares of a low priced stock.
I’m going to enter the Thanksgiving holiday with a few new positions. One with Jabil Inc (JBL), One with Square (SQ) and one with a very small stock which I’ll talk about below.
My account has been exploding, and today is no different. Not only my stock positions, but also my Long option position are up nicely. About a month ago I put a goal on my account. I wanted to end the year with my account $10,000 higher than where it was then. As of this afternoon my account is up $25,500 from that day I set my goal. I have a few positions that are thorns in my side, but not enough to stop the rest of the account from making me very happy. If there’s no huge pullback in December I could end this year with a 100% gain. That’s crazy but true! I’m about 8% short of that right now.
This week will probably end with the weekly locked in gain I already have, which is $250 from the SQ position I went in and out of. Instead of trying to push for more this week, with the Thanksgiving shortened week, I decided to start on next week.
I’ve been watching a very good, “A” rated stock, Jibal (JBL). It’s an electronics company that does business with other big tech companies like Apple. I liked where it was today so I did a Buy-Write. You might ask, if it’s such a good stock why not just buy and hold? Well, I’m going to try to reduce my stock holdings for December. I’m very happy with my account and who knows what December will bring. We might have profit taking, or selling for taxes, for the year’s end.
I bought 1000 shares of JBL at $39.08 and sold a 10 contract 12/6/19 $39.50 Call for a premium of 45¢. This is a very conservative trade on a very good stock. I’m in it to get assigned but if I don’t I have no problem owning the stock.
Buy 1000 Shares JBL @ $39.08
Sell to Open 10 JBL 12/6/19 $39.50 C @ 45¢ (+$450)
This is such a good stock I look at this as free money. I’ll be keeping the $450 and if I get assigned it will add another $420, for a total of $870. If I get assigned, which I think I will, this Buy-Write will give me a Rate of Return of 2.2% in a little more than a week. Once in a while I state that “this is the type of trade I live for,” well this one is. If you did this trade all year long your yearly Rate of Return would be fantastic! Needless to say this trade gets a Risk Factor 1.
Earlier in the week I sold a Call on SQ and got out the same day for a $250 profit. It was on Monday so I felt I might get another sold to expire this Friday. With the shortened week the premiums are not quite the same. I just sold another 10 contract Call but it will expire next Friday. With the stock at $69.30 I sold 10 SQ 12/6/19 $71 Naked Calls.
Sell to Open 10 SQ 12/6/19 $71.00 C @ 60¢ (+$600)
This gives me a little less than 1% for the week but I wanted to be careful because it’s a Naked Call. I could have went with a $70.50 Call for a higher premium but I wanted to go a bit higher for protection against getting assigned. Because of a Naked Call, and the stock being very hot, the trade gets a Risk Factor 4. I will be watching very closely.
You might remember I also own a Long option on SQ. It’s a 10 contract, $65 Call that doesn’t expire until next June 2020. For this Call I invested $8700 and it’s already up well over $2000. I went into this position on 9/5/19. I’ll be watching SQ closely. I might get out of this position shortly.
For my last trade I bought 1000 shares of a stock called PPDAI Group Inc (PPDF). The name of the stock will be changed as of Friday morning. On Friday it will open as FinVolution Group (FINV). Here’s a piece of an article I was reading:
FinVolution Group, formerly known as PPDAI Group Inc (“FinVolution,” or the “Company”) (NYSE: PPDF), a leading online consumer finance marketplace in China, today announced a reminder of that the Company’s ticker symbol on the New York Stock Exchange will be changed to “FINV” from “PPDF”, as previously announced on November 19, 2019.
Commencing on November 29, 2019, at the market open, the American depositary shares (“ADSs”), each representing five ordinary shares, of the Company, are expected to begin trading under the Company’s new ticker symbol. No action is needed from current shareholders and ADS holders in relation to the ticker symbol.
This is a very low priced stock. I like the FinTech stocks from China because of the size of the country and the amount of young people. The main reason I got into this stock is because of the dividend. With the stock at this price the dividend is at 7.72%
Buy 1000 Shares FINV @ $2.69
With such a low priced stock with a nice dividend, plus me having a great year, I figured it was worth a shot.
Successful trading,
Steve
The Options Coach