What a Day Friday was! The markets shrug off the tax threats that caused a lot of fear and aimed for new highs. Stocks recovered from Thursday’s selloff as indexes posted strong gains. The Dow was up 227, NASDAQ +198 and the S&P 500 +45. It was a well received ending to a volatile week. Possibly the tax talk was outshined by the home sales data that blew away expectation; or that homebuilders are now outpacing the NASDAQ. Many articles I’m reading are saying the new home data may be a leading indicator of stronger economic growth to come throughout the year. This week I might look into some of the homebuilders and stocks like Home Depot (HD) and Lowes (LOW).<\/p>\n
I really don’t have much available to venture into a new sector since I was only assigned on 1000 shares of AMD and 100 shares of X. With many of my positions down I’m trying to get the premiums I need from these stocks. Making money with all your positions down is difficult but gets better with experience. The indexes are up but many stocks are still down. It just so happens that my holdings fall into this category. However, I’m happy with my stock selection and have full confidence they will return to my buy-in price this year. While I wait for this to happen I use every tool available to keep bringing in premiums.<\/p>\n
Below are the trades that, again, gave me my weekly goal.<\/p>\n
<\/p>\n
Apple<\/strong><\/p>\n I bought a 1 contract Apple LEAPS when the stock was splitting. This 1 contract turned into 4 contracts on the 4:1 split. With a lot of uncertainty in the market I decided to cash in and put the 5 grand in my mattress.<\/p>\n Post 4:1 Split (Sell to Close)<\/p>\n 8\/3\/20 \u2013 Buy to Open 1 AAPL 6\/17\/22 $440.00 C @ $77.75\u00a0<\/strong><\/p>\n 4\/23\/21 \u2013 Sell to Close 4 AAPL 6\/17\/22 $110.00 C @ $32.00 <\/strong><\/p>\n Applied Materials<\/strong><\/p>\n I bought 1000 shares of AMAT on 4\/5. I sold a Call and brought in a nice premium. I was not assigned and the stock sold off. For my next Call I sold a 2 week Call to get a better premium. I sold this one on 4\/14 for a $1000 premium. The stock is still about $8 below where I bought so I might have to sell another 2 week Call on Monday. Picking the correct Expiration Date and Strike Price is all part of the game. Trading options is never a smooth highway! This is why it’s so important to pick good stocks.<\/p>\n 4\/14\/21 \u2013 Sell to Open 10 AMAT 4\/23\/21 $143.00 C @ $1.00 (+$1000)<\/strong><\/p>\n 4\/23\/21 \u2013 Expired 10 AMAT 4\/23\/21 $143.00 C<\/strong><\/p>\n Cree<\/strong><\/p>\n Cree is another stock much lower than my buy-in price. This is another one where I sold a 2 week Call. I’m in Cree at $121.50 but Friday it started to move. It closed at $114.77.<\/p>\n 4\/14\/21 \u2013 Sell to Open 10 CREE 4\/23\/21 $121.00 C @ $1.30 (+$1300)<\/strong><\/p>\n 4\/23\/21 \u2013 Expired 10 CREE 4\/23\/21 $121.00 C <\/strong><\/p>\n Roblox<\/strong><\/p>\n Last week I bought 500 shares and was assigned on my Covered Call. This week I bought another 500 shares and the stock tanked. Go figure! I’m in the stock at $77.50. It’s fighting back but it’s still only at $71.78. This might have to be another 2 week Call.<\/p>\n 4\/19\/21 \u2013 Sell to Open 5 RBLX 4\/23\/21 $78.00 C @ $2.50 (+$1250)<\/strong><\/p>\n 4\/23\/21 \u2013 Expired 5 RBLX 4\/23\/21 $78.00 C <\/strong><\/p>\n Advanced Micro Devices<\/strong><\/p>\n I bought 1000 shares of AMD on Wednesday at $82.50. As soon as I bought the stock tanked down to $78. It bounced back and I got a Call sold on Thursday. Since there was only 1 day remaining to the week, and the stock was still down, I sold an At-the-Money Call for a small premium of 25\u00a2. The stock moved on Friday and I was assigned. Wasn’t a big money play but I made money. Since it was an At-the-Money Call I made nothing on the assignment. I did keep the $250 premium. Hey, it’s better than losing money!<\/p>\n Assigned ATM Covered Call<\/p>\n 4\/21\/21 \u2013 Buy 1000 Shares AMD @ $82.50<\/strong><\/p>\n 4\/23\/21 \u2013 Assigned 1000 Shares AMD @ $82.50 <\/strong><\/p>\n Profit +0<\/strong><\/p>\n 4\/22\/21 \u2013 Sell to Open 10 AMD 4\/23\/21 $82.50 C @ 25\u00a2 (+$250)<\/strong><\/p>\n 4\/23\/21 \u2013 Expired 10 AMD 4\/23\/21 $82.50 C <\/strong><\/p>\n Peloton<\/strong><\/p>\n As you know I’m way down with Peloton. But I made a lot of money with the stock and I keep bringing in premiums. I sold this $110 Call for a 1 day trade and took in $500.<\/p>\n 4\/22\/21 \u2013 Sell to Open 20 PTON 4\/23\/21 $110.00 C @ 25\u00a2 (+$500)<\/strong><\/p>\n 4\/23\/21 \u2013 Expired 20 PTON 4\/23\/21 $110.00 C <\/strong><\/p>\n Palentir<\/strong><\/p>\n I’m down about 50% with PLTR and the premiums haven’t been great so I’ve been Idle on this stock. This week I made a 1 day trade similar to PTON, and brought in $500. I didn’t want to get assigned. I used the $23.50 Strike Price and the stock closed at $23.41. Luck was on my side!<\/p>\n 4\/22\/21 \u2013 Sell to Open 20 PLTR 4\/23\/21 $23.50 C @ 25\u00a2 (+$500)<\/strong><\/p>\n 4\/23\/21 \u2013 Expired 20 PLTR 4\/23\/21 $23.50 C <\/strong><\/p>\n Penn Gaming<\/strong><\/p>\n This was the same situation as PTON and PLTR. I sold a 1 day Call and didn’t want to get assigned. I wasn’t! I’m in this stock at $111. If I was assigned I would have had a big loss on the stock.<\/p>\n 4\/22\/21 \u2013 Sell to Open 10 PENN 4\/23\/21 $98.00 C @ 25\u00a2 (+$250)<\/strong><\/p>\n 4\/23\/21 \u2013 Expired 10 PENN 4\/23\/21 $98.00 C <\/strong><\/p>\n U.S. Steel<\/strong><\/p>\n This was a Grasshopper Trade. I was not assigned.<\/p>\n 4\/14\/21 \u2013 Sell 1 X 4\/23\/21 $24.50 C @ 50\u00a2 (+$50)<\/strong><\/p>\n 4\/23\/21 \u2013 Expired 1 X 4\/23\/21 $24.50 C <\/strong><\/p>\n U.S. Steel<\/strong><\/p>\n Another Grasshopper Trade with X. On this one I was assigned. Total return on this Covered Call was 4.2%.<\/p>\n 4\/14\/21 \u2013 Buy 100 Shares X @ $23.30<\/strong><\/p>\n 4\/23\/21 \u2013 Assigned 100 Shares X @ $23.50 <\/strong><\/p>\n Profit +$20<\/strong><\/p>\n 4\/19\/21 \u2013 Sell to Open 1 X 4\/23\/21 $23.50 C @ 80\u00a2 (+$80)<\/strong><\/p>\n 4\/23\/21 \u2013 Expired 1 X 4\/23\/21 $23.50 C <\/strong><\/p>\n If many of my stocks are down I’m sure some of yours are also. You must pick good stock that you have full confidence they will return if there is a pullback. This will save you a lot of heartache. Never be fully invested and not invest what you can afford to lose. As a Grasshopper you must concentrate on the return and not the amount of money. Pigs get slaughtered!<\/p>\n Have a great weekend!<\/p>\n <\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" What a Day Friday was! The markets shrug off the tax threats that caused a lot of fear and aimed for new highs. Stocks recovered from Thursday’s selloff as indexes posted strong gains. The Dow was up 227, NASDAQ +198 and the S&P 500 +45. It was a well received ending to a volatile week. […]<\/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-11218","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2UW","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/11218","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=11218"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/11218\/revisions"}],"predecessor-version":[{"id":11220,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/11218\/revisions\/11220"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Profit +$5025<\/strong><\/span><\/h4>\n
\nProfit +$1000<\/strong><\/span><\/h4>\n
\nProfit +1300<\/strong><\/span><\/h4>\n
\nProfit +$1250<\/strong><\/span><\/h4>\n
\nProfit +$250<\/strong><\/span><\/h4>\n
\nProfit +$500<\/strong><\/span><\/h4>\n
\n\u00a0Profit +$500<\/strong><\/span><\/h4>\n
\nProfit +$250<\/strong><\/span><\/h4>\n
\nProfit +$50<\/strong><\/span><\/h4>\n
\nProfit +$80<\/strong><\/span><\/h4>\n
\nTotal Weekly Gain +$10,225<\/strong><\/h2>\n
\n