I am still completely perplexed by this market! I understand the NASDAQ struggled this week, but the DOW is at an all time high, how are most stocks off their highs? In my case all of my stocks! If some of you are jumping into this game I’m sure you’re in the same boat. It’s not only the chip stocks and the “COVID stocks” down. Many sectors are well off their highs. The bottom line is there’s nothing we can do but put our thinking caps on and negotiate our way off this pothole filled road. I’m really not worried. I’m just a little frustrated my positions are cutting into my progress.<\/p>\n
Also, you might know I’m getting ready to pay my taxes for 2020. This is not a small bill. But it is an expected bill. The problem is putting all the money together while my positions are down. I’m trying not to drain my account of sideline money which would curtail my trading. Not to worry! I have a plan and I’ll be working on it this week. I’ll be paying on May 15th.<\/p>\n
I get a lot of questions on how to continue bringing in premiums when your positions are down. This is where you have to put your strategic mind to work and figure it out. There are a lot of tools when trading options, you have to pick the correct tools your strategic thinking comes up with and make it happen. Every problem has a different answer. Answering all the problems with one post is impossible. If you have a problem, send me an email and I’ll help as much as I can, as many of you know.<\/p>\n
This week I was able to lock in some good money, but with stock going down it’s like shoveling against the tide. I still feel the stocks I’m holding can only go down so much. I’m gonna keep bringing in money and things will change. I hope everyone understands why I like to get assigned. If I get assigned I’m out of the stock. If I don’t get assigned, this means the stock didn’t hit the Strike Price and can continue down. I like to take my premium, get assigned, take the small amount I make on the stock, and move on.<\/p>\n
This week I was assigned on a few positions. Not enough, but a few! I was assigned on my positions with Cleveland-Cliffs (CLF), U.S. Steel (X) and \u00a0Macy’s (M). Mainly Grasshopper positions.<\/p>\n
<\/p>\n
Xpang<\/strong><\/p>\n With a few weeks left to this contract I did a Buy to Close to help get ready for taxes. It only cost me 4\u00a2 to close it out.<\/p>\n 3\/31\/21 \u2013 Sell to Open 10 XPEV 5\/21\/21 $50.00 C @ $1.00 (+$1000)<\/strong><\/p>\n 5\/5\/21 \u2013 Buy to Close 10 XPEV 5\/21 21 $50.00 C @ 4\u00a2 (-$40)<\/strong><\/p>\n Nikola<\/strong><\/p>\n Another one I close out early to free up some money.<\/p>\n 3\/31\/21 \u2013 Sell to Open 10 NKLA 5\/21\/21 $20.00 C @ 70\u00a2 (+$700)<\/strong><\/p>\n 5\/5\/21 \u2013 Buy to Close 10 NKLA 5\/21 21 $20.00 C @ 7\u00a2 (-$70) <\/strong><\/p>\n Nikola<\/strong><\/p>\n This was the same as the position above only this trade was listed as a Grasshopper Trade.<\/p>\n 3\/31\/21 \u2013 Sell to Open 1 NKLA 5\/21\/21 $20.00 C @ 70\u00a2 (+$70)<\/strong><\/p>\n 5\/5\/21 \u2013 Buy to Close 1 NKLA 5\/21\/21 $20.00 C @ 7\u00a2 (-$7) <\/strong><\/p>\n Peloton<\/strong><\/p>\n This was a very nice 2 day long option. I bought going out to 6\/17\/22 but only held 2 days. I do not believe in buying short term options. It felt nice to make some money with Peloton. This was one of my better short time trades.<\/p>\n 5\/5\/21 \u2013 Buy to Open 20 PTON 6\/17\/22 $80.00 C @ $22.00<\/strong><\/p>\n 5\/7\/21 \u2013 Sell to Close 20 PTON 7\/17\/22 $80.00 C @ $25.25 <\/strong><\/p>\n Nio<\/strong><\/p>\n Nio has been down so I went out a little with the Expiration Date. I sold this Call on 4\/21 and it expired Friday. The stock is down but I keep bringing in premiums. They’re smaller but the stock is not just sitting idle. I’d rather sell the stock at a loss and move on.<\/p>\n 4\/21\/21 \u2013 Sell to Open 10 NIO 5\/7\/21 $46.00 C @ 45\u00a2 (+$450)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 10 NIO 5\/7\/21 $46.00 C<\/strong><\/p>\n Cleveland-Cliffs<\/strong><\/p>\n CLF is in the steel industry. This and U.S. Steel is doing well. Probably because of the infrastructure bill. I did an In-the-Money Covered Call. I wanted to get assigned and I was willing to lose a few cents on the stock sale while taking in a better premium. This premium was 2.7%. My strategy worked and I was assigned. With the assignment I gave back $100 on the stock sale.<\/p>\n In-the-Money Covered Call<\/p>\n 4\/26\/21 \u2013 Buy 1000 Shares CLF @ $18.10<\/strong><\/p>\n 5\/7\/21 \u2013 Assigned 1000 Shares CLF @ 18.00 <\/strong><\/p>\n 5\/3\/21 \u2013 Sell to Open 10 CLF 5\/7\/21 $18.00 C @ 50\u00a2 (+$500)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 10 CLF 5\/7\/21 $18.00 C <\/strong><\/p>\n Penn Gaming<\/strong><\/p>\n This stock is down. I took a chance not getting assigned at $95. I was right, the stock never got to my Strike Price. To protect a little in the case of assignment I sold 8 contracts with a $95 Strike and 2 contracts with a $100 Strike.<\/p>\n 5\/5\/21 \u2013 Sell to Open 8 PENN 5\/7\/21 $95.00 C @ $1.75 (+$1400)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 8 PENN 5\/7\/21 $95.00 C <\/strong><\/p>\n Penn Gaming<\/strong><\/p>\n This is the 2 contract Call I sold that I mentioned above.<\/p>\n 5\/5\/21 \u2013 Sell to Open 2 PENN 5\/7\/21 $100.00 C @ 75\u00a2 (+$150)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 2 PENN 5\/7\/21 $100.00 C<\/strong><\/p>\n Peloton<\/strong><\/p>\n With the stock being down I sold a $98.50 Call with the hope of not getting assigned. I was not assigned.<\/p>\n 5\/5\/21 \u2013 Sell to Open 20 PTON 5\/7\/21 $98.50 C @ 70\u00a2 (+$1400)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 20 PTON 5\/7\/21 $98.50 C<\/strong><\/p>\n Square<\/strong><\/p>\n Square is also off it’s high. The stock popped after earnings which came out after the close on Thursday. Let’s hope it continues up. I sold a last minute Call on Friday just to take in something.<\/p>\n 5\/7\/21 \u2013 Sell to Open 3 SQ 5\/7\/21 $245.00 C @ 35\u00a2 (+$105)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 3 SQ 5\/7\/21 $245.00 C <\/strong><\/p>\n NIO<\/strong><\/p>\n This was a 1 contract Grasshopper Trade. No assignment.<\/p>\n 4\/21\/21 \u2013 Sell to Open 1 NIO 5\/7\/21 $46.00 C @ 45\u00a2 (+$45)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 1 NIO 5\/7\/21 $46.00 C <\/strong><\/p>\n U.S. Steel<\/strong><\/p>\n <\/p>\n This was a 2 contract Grasshopper Cover Call with assigned. With assignment this was a 7.5% return. Deal over!<\/p>\n 4\/7\/21 \u2013 Buy 200 Shares X @ $23.70<\/strong><\/p>\n 5\/7\/21 \u2013 Assigned 200 Shares X @ $24.00 <\/strong><\/p>\n 5\/3\/21- Sell to Open 2 X \u00a05\/7\/21 $24.00 C @ 60\u00a2 (+$120)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 2 X 5\/7\/21 $24.00 C<\/strong><\/p>\n Macy’s<\/strong><\/p>\n This was an At-the-Money Covered Call Grasshopper Trade I was assigned on. I was in it for the Premium only. 2.6% return.<\/p>\n \u00a04\/26\/21 \u2013 Buy 200 Shares M @ $17.00<\/strong><\/p>\n 5\/7\/21 \u2013 Assigned 200 Shares M @ $17.00 <\/strong><\/p>\n 5\/3\/21 \u2013 Sell to Open 2 M 5\/7\/21 $17.00 C @ 45\u00a2 (+$90)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 2 M 5\/7\/21 $17.00 C <\/strong><\/p>\n This was a Grasshopper Trade the same as the CLF trade above. I was assigned.<\/p>\n In-the-Money Covered Call<\/p>\n 4\/26\/21 \u2013 Buy 100 Shares CLF @ $18.10<\/strong><\/p>\n 5\/7\/21 \u2013 Assigned 100 Shares CLF @ $18.00 <\/strong><\/p>\n 5\/3\/21 \u2013 Sell to Open 1 CLF 5\/7\/21 $18.00 C @ 50\u00a2 (+$50)<\/strong><\/p>\n 5\/7\/21 \u2013 Expired 1 CLF 5\/7\/21 $18.00 C <\/strong><\/p>\n Turned out to be a nice week. Let’s hope I can continue bringing in money.<\/p>\n This should be an interesting week because I’ll have to make a withdrawal for taxes. I hope the entire market moves up so I don’t even feel it.<\/p>\n <\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I am still completely perplexed by this market! I understand the NASDAQ struggled this week, but the DOW is at an all time high, how are most stocks off their highs? In my case all of my stocks! If some of you are jumping into this game I’m sure you’re in the same boat. It’s […]<\/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-11339","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2WT","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/11339","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=11339"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/11339\/revisions"}],"predecessor-version":[{"id":11340,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/11339\/revisions\/11340"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Profit +$960<\/strong><\/span><\/h4>\n
\nProfit +$630<\/strong><\/span><\/h4>\n
\nProfit +$63<\/strong><\/span><\/h4>\n
\nProfit +$6500<\/strong><\/span><\/h4>\n
\nProfit +$450<\/strong><\/span><\/h4>\n
\n\u00a0Loss -$100<\/strong><\/span><\/h4>\n
\u00a0Profit +$500<\/strong><\/span><\/h4>\n
\nProfit +$1400<\/strong><\/span><\/h4>\n
\nProfit +$150<\/strong><\/span><\/h4>\n
\nProfit +$1400<\/strong><\/span><\/h4>\n
\nProfit +$105<\/strong><\/span><\/h4>\n
\nProfit +$45<\/strong><\/span><\/h4>\n
\nProfit +$60<\/strong><\/span><\/h4>\n
Profit +$120<\/span><\/h4>\n
\nProfit +0<\/strong><\/span><\/h4>\n
Profit +$90<\/strong><\/span><\/h4>\n
\nLoss -$10<\/strong><\/span><\/h4>\n
\u00a0Profit +$50<\/strong><\/span><\/h4>\n
\nTotal Weekly Gain +$ 12,413<\/strong><\/span><\/h2>\n
\n