I’m going to talk a little more about not over investing, and always having money on the sidelines. Especially when working on margin.\u00a0Even at the risk of being redundant, it’s that important to manage your funds. I believe it’s just as important to manage your cash as it is your positions. Your cash, your sideline money, your available funds, your margin buying power; whatever you want to call it, it must be managed.<\/p>\n
In recent weeks I’ve been writing about cutting down on my weekly profits. I had an amazing first 6 weeks of 2021. Just look at the “Trade History 2021” weekly gains. They’re nothing short of amazing! I averaged well over 30K per week. And believe it or not I wasn’t even fully invested. As a result of 2020 my account grew to a sizable amount.<\/p>\n
After this crazy start I decided to pull in the reins a bit. I didn’t want these fantastic weeks to get me away from my strategy, and I wanted more money on the sidelines. Basically I felt a little market correct coming. And believe me, these last few market sell-off weeks is not the big correct I feel we might get. The loyal readers know I’ve been getting into positions with Strike prices to better my chances of assignment. Recently I was assigned on some pretty big positions including Peloton and Tesla. Last week I was assigned on 5 positions. More than before, I wanted assignments to get more money on the sidelines.<\/p>\n
So, how has this been working? The last few weeks have been quite bad for the market, especially the NASDAQ. The money I stacked on the sidelines helped me immensely. Remember, I still own 7000 shares of Palantir, along with a ton of other stocks with 1000 share positions. I would have loved to have been assigned on all of them but it didn’t work that way. Some of these positions went so low that it almost wiped out my first 6 weeks of trading. Luckily I had enough money on the sidelines to prevent a margin call, plus I had enough to get into trades to continue to bring in my weekly profit goal of $10,000.<\/p>\n
This is a great learning experience for all readers to teach the importance of managing both your positions and your cash not invested.<\/p>\n
Another lesson is the importance of picking the correct stocks to trade with. Like I said, much of my profits of 2021 are not in my account right now. But, I believe I own really good stocks. Markets don’t only move up! All stocks fluctuate. If you cannot handle, or don’t have the stomach for the market volatility, you must make smaller trades until it develops. Notice I didn’t say, you must find another business! I said, you must develop the tolerance for market swings. This is all part of being a trader. Once you develop this tough skin you will know that stocks recover. Plus, you\u00a0will make less “emotional trades” and you will become a better trader.<\/p>\n
When my stock positions recover, and are added to my weekly gains my account will look great again.<\/p>\n
I hope all this makes sense because I feel it’s very important.<\/p>\n
I had another week of many trades. As some big name stocks hit, what I felt was a good buy-in price, I sold Puts. As you look at the trades I made, notice the Puts. I sold Puts on 5 stocks. I was only assigned on 1. This means I had this stock put to me. It was a 10 contract $64 Put with NTAP. The stock closed at $62.60 and it was put to me at $64. This does not upset me, I love this stock and I think it will do well this week. Now that I own 1000 shares I’ll be selling Calls this week.<\/p>\n
Let’s take a look at my trades:<\/p>\n
Occidental Petroleum<\/strong><\/p>\n On 6\/9\/20 I bought 2 LEAPS. I sold that for a $500 profit. Doesn’t sound like much but it’s a return of 29.4%.<\/p>\n 6\/9\/20 \u2013 Buy to Open 2 OXY 1\/21\/22 $20.00 C @ $8.50<\/strong><\/p>\n 2\/22\/21 \u2013 Sell to Close 2 OXY 1\/21\/22 $20.00 C @ $11.00 <\/strong><\/p>\n Xpeng<\/strong><\/p>\n I sold a 10 contract Call with XPEV. I was not assigned. I’m disappointed in this stock but I think it will recover.<\/p>\n 2\/18\/21 \u2013 Sell to Open 10 XPEV 2\/26\/21 $47.00 C @ 65\u00a2 (+$650)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 10 XPEV 2\/26\/21 $47.00 C <\/strong><\/p>\n SLV<\/strong><\/p>\n This is another position I’m disappointed in. This is a silver ETF. I feel as Biden continues to spend money the government doesn’t have silver will go up. This was a Covered Call without assignment.<\/p>\n 2\/16\/21 \u2013 Sell to Open 5 SLV 2\/26\/21 $27.00 C @ 30\u00a2 (+$150)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 5 SLV 2\/26\/21 $27.00 C <\/strong><\/p>\n Draftkings<\/strong><\/p>\n This was a 4 day Covered Call without assignment. Nice premium!<\/p>\n 2\/22\/21 \u2013 Sell to Open 10 DKNG 2\/26\/21 $64.00 C @ $2.00 (+$2000)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 10 DKNG 2\/26\/21 $64.00 C <\/strong><\/p>\n Cree<\/strong><\/p>\n Covered Call without assignment.<\/p>\n 2\/23\/21- Sell to Open 10 CREE 2\/26\/21 $122.00 C @ $1.00 (+$1000)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 10 CREE 2\/26\/21 $122.00 C<\/strong><\/p>\n Workhorse<\/strong><\/p>\n I sold a Call on Expiration Day for the $200 premium.<\/p>\n 2\/26\/21 \u2013 Sell to Open 10 WKHS 2\/26\/21 $17.00 C @ 20\u00a2 (+$200)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 10 WKHS 2\/26\/21 $17.00 C<\/strong><\/p>\n Peloton<\/strong><\/p>\n Covered Call without assignment.<\/p>\n 2\/23\/21 \u2013 Sell to Open 20 PTON 2\/26\/21 $33.00 C @ 50\u00a2 (+$1000)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 20 PTON 2\/26\/21 $33.00 C<\/strong><\/p>\n Advanced Micro Devices<\/strong><\/p>\n My 1st Put. I felt this stock wouldn’t get down to $79 so I sold a Put for an $800 premium. It never hit $79!<\/p>\n 2\/23\/21 \u2013 Sell to Open 10 AMD 2\/26\/21 $79.00 P @ $.80 (+$800)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 10 AMD 2\/26\/21 $79.00 P <\/strong><\/p>\n Square<\/strong><\/p>\n I didn’t think SQ would get down to $222.50 with this Put. It didn’t!<\/p>\n 2\/23\/21 \u2013 Sell to Open 5 SQ 2\/26\/21 $222.50 P @ $3.00 (+$1500)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 5 SQ 2\/26\/21 $222.50 P<\/strong><\/p>\n Netapp<\/strong><\/p>\n The stock fell a little after earnings. I was assigned on this $64 Put. I’ll sell a Call on Monday.<\/p>\n 2\/23\/21 \u2013 Sell to Open 10 NTAP 2\/26\/21 $64.00 P @ $.75 (+$750)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 10 NTAP 2\/26\/21 $64.00 P <\/strong><\/p>\n Workhorse<\/strong><\/p>\n Workhorse took a big dip after not getting a government. After the dip I sold a $13 Put. I felt confident it wouldn’t go lower.<\/p>\n 2\/24\/21 \u2013 Sell to Open 10 WKHS 2\/26\/21 $13.00 P @ 95\u00a2 (+$950)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 10 WKHS 2\/26\/21 $13.00 P <\/strong><\/p>\n Workhorse<\/strong><\/p>\n As time went by I sold another WKHS Put. Also not assigned.<\/p>\n 2\/25\/21 \u2013 Sell to Open 10 WKHS 2\/26\/21$13.00 P @ 22\u00a2 (+$220)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 10 WKHS 2\/26\/21 $13.00 P <\/strong><\/p>\n SLV<\/strong><\/p>\n Grasshopper trade, same as above.<\/p>\n 2\/26\/21 \u2013 Sell to Open 1 SLV 2\/26\/21 $27.00 C @ 30\u00a2 (+$30)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 1 SLV 2\/26\/21 $27.00 C <\/strong><\/p>\n Workhorse<\/strong><\/p>\n Grasshopper trade. A Covered Call with assignment.<\/p>\n 2\/25\/21 \u2013 Buy 100 Shares WKHS @ $15.50<\/strong><\/p>\n 2\/26\/21 \u2013 Assigned 100 Shares WKHS @ $16.00<\/strong><\/p>\n <\/p>\n 2\/25\/21 \u2013 Sell to Open 1 WKHS 2\/26\/21 $16.00 C @ .55 (+$55)<\/strong><\/p>\n 2\/26\/21 \u2013 Expired 1 WKHS 2\/26\/21 $16.00 C <\/strong><\/p>\n I’m very happy with this week. I was able to keep money on the sidelines, no margin call and make my weekly goal. However, I was a little short of $10,000.<\/p>\n Watch for the Grasshopper Report.<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I’m going to talk a little more about not over investing, and always having money on the sidelines. Especially when working on margin.\u00a0Even at the risk of being redundant, it’s that important to manage your funds. I believe it’s just as important to manage your cash as it is your positions. Your cash, your sideline […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-10811","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2On","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10811"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10811\/revisions"}],"predecessor-version":[{"id":10812,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/10811\/revisions\/10812"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Profit +$500<\/strong><\/span><\/h4>\n
\nProfit +$650<\/strong><\/span><\/h4>\n
\nProfit +$150<\/strong><\/span><\/h4>\n
\nProfit +$2000<\/strong><\/span><\/h4>\n
\nProfit +$1000<\/strong><\/span><\/h4>\n
\nProfit +$200<\/strong><\/span><\/h4>\n
\nProfit -$1000<\/strong><\/span><\/h4>\n
\nProfit +$800<\/strong><\/span><\/h4>\n
\nProfit +$1500<\/strong><\/span><\/h4>\n
\n\u00a0Profit +$750<\/strong><\/span><\/h4>\n
\n\u00a0Profit +$950<\/strong><\/span><\/h4>\n
\nProfit +$220<\/strong><\/span><\/h4>\n
\nProfit +$30<\/strong><\/span><\/h4>\n
\nProfit +$50<\/strong><\/span><\/h4>\n
Profit +$55<\/strong><\/span><\/h4>\n
\nTotal Weekly Gain +$9855<\/strong><\/h2>\n
\n