I’m not pushing trades in December but I still had a fantastic week.
This week I had 3 Covered Calls with 3 very good stocks, Micron (MU), Jabil (JBL), and Advanced Micro Devices (AMD). I was assigned on 2 of the 3 positions, and both had a decent size Opportunity Lost. We have a few new readers join us this week who might not know my feeling about Opportunity Lost. The truth is they don’t bother me. If I worried about getting every dollar out of a trade I don’t think I’d be as successful. New readers you can also read my Year To Date (YTD) results. If I worried about Opportunity Lost I know my results would not be the same. It would stop me from selling Calls, or at least curtail my selling. And most know selling Calls is my bread & butter. If I come out of a trade with a profit It’s a winner, PERIOD!
This week I had and Opportunity Lost with MU and AMD and still had a fantastic week. Let’s take a look.
Micron
I bought 500 shares of MU on 9/6/19. I sold a Call or 2 before the stock went down a little to where I couldn’t get a nice premium. The stock has been moving sidewards or lower for most of the time I owned the stock. It finally moved up to where I was able to get a Call sold. On 9/6 I bought the stock at $49.30 and the Call I sold had a Strike Price of $49.50. I was happy to bring in another premium so I wasn’t just holding the stock idle. As luck would have it, as soon as I sold the Call the stock started moving. I mean moving fast and far. In the 10 days I had the Call sold the stock moved about $7. Because of the Call I sold, I only realized 20¢ of that because of my $49.50 Strike. The stock closed on Friday at $55.06. If I didn’t sell this Call my profit on the stock (if I sold) would have been $5.76. On 500 shares that would have been $2880. Like I said, I don’t care! I’m not changing my strategy.
I only made $100 on the stock sale but I brought in a $600 premium.
9/6/19 – Buy 500 Shares MU @$49.30
12/20/19 – Assigned 500 Shares MU @ $49.50
Profit +$100
12/10/19 – Sell to Open 5 MU 12/20/19 $49.50 C @ 1.20 (+$600)
12/20/19 – Expired 5 MU 12/20/19 $49.50 C
Profit +$600
Jabil
I bought 1000 shares of JBL late last week with the plan of a Covered Call. I’m trying not to take risk at the end of the year and I felt this was a low risk Covered Call. I did not get assigned and I’ll see what Monday brings. Maybe I’ll sell another Call.
12/11/19 – Sell to Open 10 JBL 12/20/19 $42.00 C @ 65¢ (+$650)
12/20/19 – Expired 10 JBL 12/20/19 $42.00 C
Profit +$650
Advanced Micro Devices
AMD has been dragging me through the mud with my Naked Call and Roll-Outs, I decided to start making money with the stock. It’s been moving crazy! I bought 1000 shares of the stock at $41.50 and sold the $43 Call. I made great money on the stock sale and a nice premium. However, the stock closed at $44.15 so I had another Opportunity Lost of $1.15. On 1000 shares that’s $1150. Again, no problem!
12/13/19 – Buy 1000 Shares AMD @ 41.45
12/20/19 – Assigned 1000 Shares AMD @ $43.00
Profit +$1550
12/16/19 – Sell to Open 10 AMD 12/20/19 $43.00 C @ 60¢ (+$600)
12/20/19 – Expired 10 AMD 12/20/19 $43.00 C
Profit +600
That’s the few trades I had this week which gave me a nice weekly gain.
Weekly Gain +$3500
Watch for my post on the new portfolio. It will be called the Dividend Growth Portfolio.
Also, I’m working on my report on Marvel. The stock was put into the 5 Star Trading Portfolio last week. I believe it will be a good one. In addition to the stock being in a portfolio, I also have Marvel LEAPS in the Stock Alternative Portfolio.
Successful trading,
Steve
The Options Coach