I have a few new students I’m working very closely with. They are Grasshoppers and they seem to be into what they’re learning. Maybe because they are locked it there homes like the rest of us. What ever the reason, they’re young and I feel they have a lot of potential to make a lot of money in their lives if they stick to the rules.<\/p>\n
Well, if they’re looking for a little inspiration, this week I locked in the most money since January of 2018. When I say “locked in” it doesn’t always mean my account went up by the amount I “lock in” on the week.<\/p>\n
For instance, I sold a few of my LEAPS positions this week. They brought in some real nice money. However, I’m still holding about 10 more. This week was not a very good week for the market. All of my LEAPS went down. When you hold a position, and it goes down, you didn’t lose the money because you’re still holding the position, but your account will suffer until the position comes back up. This week my account reflects all my LEAPS being down. Moreover, I’m holding 1000 shares of United Airlines (UAL). I didn’t want to hold this stock, and I was very vocal about this. But I did a Covered Call, wasn’t assigned, and now I’m stuck with the stock down $9 from where I bought. Yes, that’s $9000! This is the reason why I love to get assigned. The desire to get assigned does not fit into everyone’s strategy, but it is mine. As I said, for this reason. I like to get assigned and move on. I’m a TRADER! Keep putting my money to work on a weekly, or monthly, basis so I want my money available. Assignment keeps my money available. I don’t want my money dormant, enduring the fluctuations of the market. Especially in these times!<\/p>\n
Let’s take a look at the many trades I exited to have the biggest week in 2 years.<\/p>\n
Twitter<\/strong><\/p>\n I did a “Buy to Close” on a Naked Call.<\/p>\n 5\/8\/20 \u2013 Sell to Open 10 TWTR 5\/15\/20 $29.50 C @ $1.03 ($1030)<\/strong><\/p>\n 5\/11\/20 \u2013 Buy to Close 10 TWTR $29.50 C @ 73\u00a2 (-$730) <\/strong><\/p>\n Penn Gaming<\/strong><\/p>\n I sold a 2 Contract LEAPS. I held this position for a month. This trade had a Rate of Return of 222%. FANTASTIC!<\/p>\n 4\/2\/20 \u2013 Buy to Open 2 PENN 1\/21\/22 $10.00 C @ $5.40<\/strong><\/p>\n 5\/11\/20 \u2013 Sell to Close 2 PENN 1\/21\/22 $10.00 C @ $12.00 <\/strong><\/p>\n Nvidia<\/strong><\/p>\n Another LEAPS I decided to sell. Turned out to be a premature sale because the stock continued up. No Problem! The Rate of Return is 47% in less than 3 weeks.<\/p>\n 4\/21\/20 \u2013 Buy to Open 1 NVDA 1\/21\/22 $270.00 C @ $68.00<\/strong><\/p>\n 5\/11\/20 \u2013 Sell to Close 1 NVDA 1\/21\/22 $270.00 C @ $100.00 <\/strong><\/p>\n RH<\/strong><\/p>\n Another LEAPS sold. Held for less than 3 weeks. 55% gain!<\/p>\n 4\/22\/20 \u2013 Buy to Open 1 RH 1\/21\/22 $125.00 C @ $47.00<\/strong><\/p>\n 5\/11\/20 \u2013 Sell to Close 1 RH 1\/21\/22 $125.00 C @ $73.00 <\/strong><\/p>\n Micron<\/strong><\/p>\n Did a “Buy to Close” on a Naked Call.<\/p>\n 5\/11\/20 \u2013 Sell to Open 10 MU 5\/15\/20 $50.00 C @ 50\u00a2 (+$500)<\/strong><\/p>\n 5\/12\/20 \u2013 Buy to Close 10 MU 5\/15\/20 $50.00 C @ 15\u00a2 (-$150) <\/strong><\/p>\n United Airlines<\/strong><\/p>\n Expired Covered Call. I was not assigned. The problem is I’m stuck with this stock at $19.92. I’ll continue selling Calls.<\/p>\n 5\/5\/20 \u2013 Sell to Open 10 UAL 5\/15\/20 $28.00 C @ $1.00 (+$1000)<\/strong><\/p>\n 5\/15\/20 \u2013 Expired 10 UAL 5\/15\/20 $28.00 C <\/strong><\/p>\n Inseego<\/strong><\/p>\n I like Inseego but it only has monthly options. This was a Naked Call. I bought shares with this premium.<\/p>\n 4\/21\/20 \u2013 Sell to Open 10 INSG 5\/15\/20 $15.00 C @ 45\u00a2 (+$450)<\/strong><\/p>\n 5\/15\/20 \u2013 Expired 10 INSG 5\/15\/20 $15.00 C <\/strong><\/p>\n Inseego<\/strong><\/p>\n Inseego took a beating this week. It’s been doing great but the coronavirus is taking it’s toll. I like the stock and hold two 20 contracts LEAPS. Now that it’s down I might buy more. The stock dropped below my Strike Price with this Put so I did a “Buy to Close” at the close of the market on Friday. I still made $600.<\/p>\n 4\/17\/20 \u2013 Sell to Open 10 INSG 5\/15\/20 $10.00 P @ 95\u00a2 (+$950)<\/strong><\/p>\n 5\/15\/20 \u2013 Buy to Close 10 INSG 5\/15\/20 $10.00 P @ 35\u00a2 (-$350) <\/strong><\/p>\n Peloton – Triple Play Hedge<\/strong><\/p>\n This might get a little complicated for anyone not interested in my Triple Play Hedge Strategy. All Calls expired for huge profits. However, one of the Calls was a $48 Strike. The stock closed above $48. Right at the close on Friday I bought the stock to cover the Call. I had to buy the stock at $48.40 and was assigned at $48. I took a $400 loss on the stock but the Call brought in $750. The trade buying the stock is at the bottom of the Triple Play Hedge, see below. I was assigned on the $44 Call which was covered from the beginning. Made $300 on the stock sale.<\/p>\n 5\/12\/20 \u2013 Buy 1000 Shares of PTON @ $43.70<\/strong><\/p>\n 5\/15\/20 \u2013 Assigned 1000 Shares PTON @ $44.00 <\/strong><\/p>\n 5\/12\/20 \u2013 Sell to Open 10 PTON 5\/15\/20 $44.00 C @ $1.75 (+$1750)<\/strong><\/p>\n 5\/15\/20 \u2013 Expired 10 PTON 5\/15\/20 $44.00 C <\/strong><\/p>\n 5\/12\/20 \u2013 Sell to Open 10 PTON 5\/15\/20 $48.00 C @ $75\u00a2 (+$750)<\/strong><\/p>\n 5\/15\/20 \u2013 Expired 10 PTON 5\/15\/20 $48.00 C <\/strong><\/p>\n 5\/12\/20 \u2013 Sell to Open 10 PTON 5\/15\/20 $49.00 C @ 50\u00a2 (+$500)<\/strong><\/p>\n 5\/15\/20 \u2013 Expired 10 PTON 5\/15\/20 $49.00 C \u00a0<\/strong><\/p>\n This is the stock I had to buy to cover my $48 Call<\/p>\n 5\/15\/20 \u2013 Buy 1000 Shares PTON @ $48.40<\/strong><\/p>\n 5\/15\/20 \u2013 Assigned 1000 Shares PTON @ $48.00<\/strong><\/p>\n Peloton \u2013 Covered Call<\/strong><\/p>\n This was a 1 day Covered Call. I love trades like this. Made $100 on the stock sale and a $600 premium. Great for 1 day!<\/p>\n 5\/14\/20 \u2013 Buy 1000 Shares PTON @ $45.90<\/strong><\/p>\n 5\/15\/20 \u2013 Assigned 1000 Shares PTON @ $46.00 \u00a0<\/strong><\/p>\n 5\/14\/20 \u2013 Sell to Open 10 PTON 5\/15\/20 $46.00 Call @ 60\u00a2 (+$600)<\/strong><\/p>\n 5\/15\/20 \u2013 Expired 10 PTON 5\/15\/20 $46.00 C<\/strong><\/p>\n For those who made it through this post, congratulations! You love the option’s market lol.<\/p>\n I hope you can see the potential of LEAPS. My LEAPS are buying options but I strongly recommend staying away from buying shorter term options. Mark my words “YOU WILL LOSE MONEY!”<\/p>\n Any questions, send an email.<\/p>\n Enjoy your Sunday!<\/p>\n Successful Trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I have a few new students I’m working very closely with. They are Grasshoppers and they seem to be into what they’re learning. Maybe because they are locked it there homes like the rest of us. What ever the reason, they’re young and I feel they have a lot of potential to make a lot […]<\/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-7648","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-1Zm","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7648","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=7648"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7648\/revisions"}],"predecessor-version":[{"id":7652,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7648\/revisions\/7652"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\u00a0Profit +$300<\/strong><\/span><\/h4>\n
\n\u00a0Profit +$2400<\/strong><\/span><\/h4>\n
\nProfit +$3200<\/strong><\/span><\/h4>\n
\nProfit +$2600<\/strong><\/span><\/h4>\n
\nProfit +$350<\/strong><\/span><\/h4>\n
\nProfit +$1000<\/strong><\/span><\/h4>\n
\nProfit +$450<\/strong><\/span><\/h4>\n
\nProfit $600<\/strong><\/span><\/h4>\n
\nProfit +$300<\/strong><\/span><\/h4>\n
Profit +$1750<\/strong><\/span><\/h4>\n
Profit +$750<\/strong><\/span><\/h4>\n
Profit +$500<\/strong><\/span><\/h4>\n
Loss ($400)<\/strong><\/span><\/span><\/h4>\n
\nProfit +$100<\/strong><\/span><\/h4>\n
Profit +$600<\/strong><\/span><\/h4>\n
\nTotal Weekly Gain +$14,500<\/strong><\/h2>\n
\n