{"id":13979,"date":"2024-02-26T12:29:37","date_gmt":"2024-02-26T17:29:37","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?page_id=13979"},"modified":"2024-02-26T12:29:37","modified_gmt":"2024-02-26T17:29:37","slug":"out-of-my-2-walmart-calls","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=13979","title":{"rendered":"Out of My 2 Walmart Calls"},"content":{"rendered":"

On Friday I bought 2 Walmart (WMT) Calls. Getting into this position was part of my “stock split strategy.” You can read about me getting into the position HERE<\/a><\/span>.<\/p>\n

I got into the position to hold it for 1 day. I wrote that I wanted to make a quick 40 to 50%. Knowing that I wanted to get out of the position in 1 day I could have bought the option with the Expiration Date much closer but I went out to March 28th. This cost me more money than if I bought the March 1st option but it gave me Time Decay protection. In today’s environment you never know if the market is going to move up or down.<\/p>\n

Let’s say Walmart was down $2 today. My March 1st option would have been in trouble, it would have to recover and go up by this Friday. With my March 28th option I would have another 4 weeks for the stock to recover and go up.<\/p>\n

With the stock at $175.10 I bought 2 WMT 3\/28\/24 $175 Calls at $3.35. This position cost me $670.<\/p>\n

Buy to Open 2 WMT 3\/28\/24 $175.00 C @ $3.35 ($670)<\/strong><\/h4>\n

Today the market opened with Walmart trading at the split adjusted price. The stock opened at $59.12, and I now owned 6 contracts of the WMT 3\/28\/24 $58.33 Calls. After a split you get a weird Strike Price. After the calculation I received a Strike of $58.33.<\/p>\n

With my split strategy, when I get in the position the day before the split I want to get out the day of the split (today). I saw the opportunity to get out with a little over a $300 profit so I jumped out.<\/p>\n

Sell to Close – 6 WMT 3\/28\/24 $58.33 C @ $1.75 ($1050)<\/strong><\/h4>\n

Profit $380<\/span><\/strong><\/h3>\n

The position cost me $670 and I got out with $1050. This is a profit of $380. This is a return of 56.7%. Pretty close to my goal.<\/p>\n

If I opened the position with the Expiration Date of March 1st I would have made a bit more money and a higher Rate of Return, but I like buying the Expiration Date a little further out, which cost more money, but I am more protected. Buying options, especially short term options, is always a bit risky. I like having more protection I get with more time.<\/p>\n

I plan on getting back into WMT in the next few days. I will be buying options but with this position my Expiration Date will go out about 6 months. Many times after a stock splits it will start to climb toward its pre-split price.<\/p>\n

If you have any questions on my “stock split strategy” send me an email.<\/p>\n

 <\/p>\n

Successful trading<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

On Friday I bought 2 Walmart (WMT) Calls. Getting into this position was part of my “stock split strategy.” You can read about me getting into the position HERE. I got into the position to hold it for 1 day. I wrote that I wanted to make a quick 40 to 50%. Knowing that I […]<\/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-13979","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3Dt","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13979","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=13979"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13979\/revisions"}],"predecessor-version":[{"id":13980,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13979\/revisions\/13980"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}