What a wild ride the market was this week. And I think we’ll see many more like it. If you want to be a trader you better put your seat belt on evaluate you “Risk Tolerance.”<\/p>\n
If you decided to test the waters of buying options, after Thursday, you know why I frown upon it. If you read Main Street beats Wall Street<\/strong> you are probably in the beginning stages of your options trading career. You have no business buying options. Especially short term options.<\/p>\n Me, I’ve been doing this for a long time and I still don’t buy short term options. If I buy options they are LEAPS, which I’m a big fan of. The bottom line is, stick to selling options!<\/p>\n I had a lot of trades come to an end this week. All involved selling options. In a crazy week like this I was also assigned on a few. After Thursday, that’s surprising! \u00a03 out of 5 days this week were big down days. I was still able to lock in over 10 grand. That’s right, this money is in my mattress! If that’s not enough to convince you to stick to selling you should re-evaluate what you’re in this for.<\/p>\n Let’s take a look at my many trades of the week.<\/p>\n Nutanix<\/strong><\/p>\n I owned 1500 shares of NTNX. I reduced my position by 500 shares.<\/p>\n 5\/29\/20 \u2013 Buy 500 Shares of NTNX @ $23.70\u00a0<\/strong><\/p>\n 6\/8\/20 \u2013 Sell 500 Shares NTNX @ $24.15 <\/strong><\/p>\n Occidental Petroleum<\/strong><\/p>\n Early in the week I sold a 10 contract Naked Call with OXY. The stock made a move down and I was able to get out of the trade keeping $500 of the $1000 I signed up for. I was in the position for about an hour.<\/p>\n 6\/8\/20 \u2013 Sell to Open 10 OXY 6\/12\/20 $27.00 C @ $1.00 (+$1000)<\/strong><\/p>\n 6\/8\/20 \u2013 Buy to Close 10 OXY 6\/12\/20 $27.00 C @ 50\u00a2 ($500) <\/strong><\/p>\n Occidental Petroleum\u00a0<\/strong><\/p>\n This was an At-the-Money Covered Call where I was assigned.<\/p>\n 5\/26\/20 \u2013 Buy 1000 Shares OXY @ $14.50<\/strong><\/p>\n 6\/12\/20 \u2013 Assigned 1000 Shares OXY @ $14.50 <\/strong><\/p>\n 6\/1\/20 \u2013 Sell to Open 10 OXY 6\/12\/20 $14.50 C @ 40\u00a2 (+$400)<\/strong><\/p>\n 6\/12\/20 \u2013 Expired 10 OXY 6\/12\/20 $14.50 C <\/strong><\/p>\n Nutanix<\/strong><\/p>\n This was a Covered Call. I was not assigned. I’ll sell another Call this week.<\/p>\n 6\/8\/20 \u2013 Sell to Open 10 NTNX 6\/12\/20 $24.00 C @ 55\u00a2 (+$550)<\/strong><\/p>\n 6\/12\/20 \u2013 Expired 10 NTNX 6\/12\/20 $24.00 C <\/strong><\/p>\n Occidental Petroleum<\/strong><\/p>\n Covered Call. I was not assigned. Great premium. Hopefully I’ll get another Call sold this week. OXY dropped a bit.<\/p>\n 6\/8\/20- Sell to Open 10 OXY 6\/12\/20 $24.00 C @ $1.80 (+$1800)<\/strong><\/p>\n 6\/12\/20 \u2013 Expired 10 OXY 6\/12\/20 $24.00 C <\/strong><\/p>\n Peloton\u00a0<\/strong><\/p>\n This was the crown jewel of this week’s trades. I owned 2000 shares. I sold a 20 contract Covered Call. I brought in a crazy premium of $3100, plus I was assigned and received another $1160 from the stock sale. This trade brought in a total of $4260.<\/p>\n 5\/26\/20 \u2013 Buy 2000 Shares PTON @ $45.42<\/strong><\/p>\n 6\/12\/20 \u2013 Assigned 2000 Shares PTON @ $46.00 <\/strong><\/p>\n 6\/9\/20- Sell to Open 20 PTON 6\/12\/20 $46.00 C @ $1.55 (+$3100)<\/strong><\/p>\n 6\/12\/20 \u2013 Expired 20 PTON 6\/12\/20 $46.00 C <\/strong><\/p>\n Draftkings<\/strong><\/p>\n Covered Call without assignment. Hopefully I’ll get another Call sold this week.<\/p>\n 6\/9\/20 \u2013 Sell to Open 5 DKNG 6\/12\/20 $42.00 C @ $1.20 (+$600)<\/strong><\/p>\n 6\/12\/20 \u2013 Expired 5 DKNG 6\/12\/20 $42.00 C <\/strong><\/p>\n Nvidia<\/strong><\/p>\n Covered Call without assignment. The stock has been very volatile. I’ll take $1000 premiums all year long. I’ll get another Call sold this week.<\/p>\n 6\/9\/20 \u2013 Sell to Open 2 NVDA 6\/12\/20 $365.00 C @ $5.00 (+$1000)<\/strong><\/p>\n 6\/12\/20 \u2013 Expired 2 NVDA 6\/12\/20 $365.00 C <\/strong><\/p>\n Nvidia<\/strong><\/p>\n This was a late week Naked Call. After watching NVDA for a long time I felt if I went Out-of-the-Money enough I would stay out of trouble. It worked for a profit of $300.<\/p>\n 6\/10\/20 \u2013 Sell to Open 1 NVDA 6\/12\/20 $382.50 C @ $3.00 (+$300)<\/strong><\/p>\n 6\/12\/20 \u2013 Expired 1 NVDA 6\/12\/20 $382.50 C <\/strong><\/p>\n United Airlines \u2013 Roll-Out<\/strong><\/p>\n On May 18th I sold a Naked Call on UAL. The stock took off. It went up into the $40’s. I didn’t want to take a lose so I did a Roll-Out. The stock came back down and I did the Roll-Out. I also bought the stock to cover. The Roll-Out came to an end this Friday and the result of all the trades is a positive $750. +$100 on the stock sale and the premiums came out +$650. It’s very important to know how to make adjustment trades. This one worked out well. If you have any questions on how a Roll-Out works send me an email.<\/p>\n 5\/29\/20 \u2013 Buy 1000 Shares UAL @ $27.90<\/strong><\/p>\n 6\/12\/20 \u2013 Assigned 1000 Shares UAL @ $28.00 <\/strong><\/p>\n 5\/18\/20 \u2013 Sell to Open 10 UAL 5\/29\/20 $26.00 C @ 50\u00a2 (+$500)<\/strong><\/p>\n 5\/29\/20 \u2013 Buy to Close 10 UAL 5\/29\/20 $26.00 C @ $1.80 (-1800)<\/strong><\/p>\n 5\/29\/20 \u2013 Sell to Open 10 UAL 6\/12\/28 $28.00 C @ $1.95 (+$1950)<\/strong><\/p>\n 6\/12\/20 \u2013 Expired 10 UAL 6\/12\/20 $28.00 C<\/strong><\/p>\n Have a great weekend!<\/p>\n Successful Trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" What a wild ride the market was this week. And I think we’ll see many more like it. If you want to be a trader you better put your seat belt on evaluate you “Risk Tolerance.” If you decided to test the waters of buying options, after Thursday, you know why I frown upon it. […]<\/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-7855","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-22H","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7855","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=7855"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7855\/revisions"}],"predecessor-version":[{"id":7856,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7855\/revisions\/7856"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Profit +$225<\/strong><\/span><\/h4>\n
\nProfit +$500<\/strong><\/span><\/h4>\n
\nProfit 0<\/strong><\/span><\/h4>\n
\u00a0Profit +$400<\/strong><\/span><\/h4>\n
\n\u00a0Profit +$ 550<\/strong><\/span><\/h4>\n
\n\u00a0Profit +$1800<\/strong><\/span><\/h4>\n
\nProfit +$1160<\/strong><\/span><\/h4>\n
Profit +$3100<\/strong><\/span><\/h4>\n
\nProfit +$600<\/strong><\/span><\/h4>\n
\nProfit +$1000<\/strong><\/span><\/h4>\n
\nProfit +$300<\/strong><\/span><\/h4>\n
\nProfit +$100<\/strong><\/span><\/h4>\n
Profit +650<\/strong><\/span><\/h4>\n
\nTotal Weekly Gain $10,385<\/strong><\/h2>\n
\n