Not a bad week for a low trade volume trade week.
3 positions came to an end this week. 1 was closing a LEAPS position with U.S. Steel (X), 1 was the expiration of a Covered Call option with Jabil (JBL), and the last was the expiration of a Naked Call on Square (SQ).
I bought a LEAPS option on X back on 11/11/19. I was in the LEAPS position only a month but I didn’t like the way the stock was moving. I think this position will make money but I’m just trying to clear up some of my positions in preparation for the new year. I left the position with a small dollar amount in profit but it was a 6% gain on my investment so I’m happy. Whenever you leave a position making money while trading options, be happy!
11/11/19 – Buy to Open 10 X 1/15/21 $13.00 C @ $3.30 ($3300)
12/6/19 – Sell to Close 10 X 1/15/21/ $13.00 C @ $3.50 ($3500)
Profit +$200
On 11/29/19 I bought 1000 shares of JBL for $39.08 per share. I also sold a 10 contract, $39.50 option, to expire this past Friday. The stock went up from where I bought but not up to my Strike Price. The option expired, I keep the $450 premium, and I still own the shares. Monday I’ll watch to see how the stock moves and determine if I want to sell another Call or just sell the stock.
11/27/19 – Sell to Open 10 JBL 12/6/19 $39.50 C @ 45¢ (+$450)
12/6/19 – Expired 10 JBL 12/6/19 $39.50 C
Profit +$450
On 11/26/19 SQ was up and I sold a $71 Naked Call. I sold a Naked Call because I felt the stock was gonna back off. It did and the Call expired below the Strike. I keep the $600 premium and this position is closed. I love Naked Calls when they work the way you planned.
11/26/19 – Sell to Open 10 SQ 12/6/19 $71.00 C @ 60¢ (+$600)
12/6/19 – Expired 10 SQ 12/6/19 $71.00 C
Profit +$600
I’m holding back on trades this month, getting ready for the new year. I really had a great 2019 and I want to bring my profits into 2020. You can read about my 2019 results at Year To Date (YTD) Results.
Total Weekly Gains +$1250
I just put up a new page. It’s under “Philosophy, Strategy & Risk.” The page is called Alternative Covered Call. You can be an options trader without reading this page but I think it’s important to understand many different strategies, and this is a good one. Especially if you work on margin. It’s a strategy I’ll be using in my new Wealth Builder section. If you plan on following Wealth Builder make sure you read Alternative Covered Call. Wealth Builder will be published in a day or 2. It’s ready and I would put it up right now but I out in the Hampton with my wife, Irene and some good friends. Hopefully I’ll get to it later today.
Successful trading,
Steve
The Options Coach