I’ve had better weeks but this past week was not bad. Not bad as far as the money I locked in, however, my account is down from the beginning of the week. I only report the money I lock in as a result of trades coming to an end through expiration of options, or getting out of a position with the selling of a long position or buying back a short position. I do not report if a position is down from where I bought with market fluctuation.
I have no idea what this week will bring. I have no idea what trades I’ll make. Right now I’m fully invested and I sense a problem. I get this feeling because a few more cases of the Coronavirus have been detected in the U.S. Hopefully we won’t get many more cases but the way the market has been moving I’m afraid investors might look at this as a good time to take money off the table. Everything is great with the economy, and we have big earning’s reports coming out this week, but you never know the panic the Coronavirus can cause. Once selling starts, and the computer selling follows, we could see a big drop in the market. Let’s hope this doesn’t happen. If it does I’ll just have to ride it out. When you have a big drop in the market your risk tolerance gets put to the test.
Any subscriber who follows my positions knows back on 9/16/19 I bought 10 contracts of DISH 6/19/20 Calls. These Calls are down and even though I have until June for expiration I started bailing out of the Calls. Last week I sold 2 and this week I sold another 2. I sold them on Friday. I didn’t get to report this on Friday afternoon so I reporting now.
DISH
I bought the Calls at $6.30 and this week I sold 2 at $4.70 for a $320 loss on the 2 contracts.
9/16/19 – Buy to Open 2 DISH 6/19/20 $35.00 C @ $6.30 ($1260)
1/24/20 – Sell to Close 2 DISH 6/19/20 $35.00 C @ $4.70 ($940)
Profit -$320
Marvell
I sold a 10 contract Call on MRVL. The Call expired and I wasn’t assigned. I keep the premium and I keep the stock.
1/13/20 – Sell to Open 10 MRVL 1/24/20 $28.00 C @ 25¢ (+$250)
1/24/20 – Expired 10 MRVL 1/24/20 $28.00 C
Profit +$250
Micron
Same with Micron as with MRVL. Sold a 10 contract Call. Call expired and I wasn’t assigned.
1/17/20 – Sell to Open 10 MU 1/24/20 $58.50 C @ 55¢ (+$550)
1/24/20 – Expired 10 MU 1/24/20 $58.50 C
Profit +$550
Canopy
Last week I bought 1000 shares of Canopy and sold a 10 contract Call. I was assigned on the shares. This week I did another Covered Call. Only this week I bought 500 shares and sold 5 contracts. This week I wasn’t assigned. I still own the 500 shares.
1/17/20 – Sell to Open 5 CGC 1/24/20 $25.50 C @ $60¢ (+$300)
1/24/20 – Expired 5 CGC 1/24/20 25.50 C
Profit +$300
Weight Watchers
Last week I sold 10 Naked contracts with WW. I felt the stock was coming down so I went Naked so I didn’t have to buy the stock. This week I made a big mistake. I decided to buy the stock and do a Covered Call. My Calls expired but the stock went down $5. I’m very angry with myself because I really don’t like the stock. The reason I did it was I saw a bunch of Weight Watchers commercials on TV with Oprah. She has a huge investment in WW and I think she’s gonna work hard to bring the business up, and I feel this will help the stock price. I just don’t like being in this stock when I feel the market can have a pull back. Let’s watch and see what happens. I did get a very nice premium!
1/21/20 – Sell to Open 10 WW 1/24/20 $39.50 C @ $1.00 (+$1000)
1/24/20 – Expired 10 WW 1/24/20 $39.50 C
Profit +$1000
Overall it was a nice week. We’ll have to see what happens tomorrow to see how I manage some of my position.
Total Weekly Gain +1780
Last week I bought 200 shares of Apple and sold a Call. I was assigned. This past week I bought another 200 shares but I didn’t get a Call sold. For this coming week the premiums are very high because Apple reports earnings on Tuesday. I’ll do something this week, tomorrow or Tuesday. They report Tuesday after the close. Hopefully the stock goes up the next 2 days going into earnings.
Sorry for the late report, I had a very busy weekend.
successful trading,
Steve
The Options Coach