Made only a few trades this week but I freed up some cash for the coming week.<\/p>\n
I sold a Covered Call back on 5\/28\/19 with Advanced Micro Devices (AMD). This was a long term option with the Expiration Date going out to 1\/17\/20. This week I decided to do a \u201cBuy to Close\u201d to get out of that Call position. If I held the position until expiration I would have kept the entire premium of $2650. This week, with the crazy market volatility, thanks to the Trump tweets lol, AMD dropped down to where the premium was at $2.15. I sold the Call for $2.65 and I did the \u201cBuy to Close\u201d with the premium at $2.15 making a $500 profit. You must understand Short Positions<\/a><\/span>.<\/p>\n 5\/28\/19 \u2013 Sell to Open 10 AMD 1\/17\/20 $35.00 C @ $2.65 (+$2650)<\/strong><\/p>\n 8\/27\/20 \u2013 Buy to Close 10 AMD 1\/17\/19 $35.00 C @ $2.15 (-$2150)<\/strong><\/p>\n I was in the Call for almost 3 months but there was still 5 months before expiration. I had the opportunity to lock in $500, so I did. I figured if AMD continues back up I would get an opportunity to sell another Call. Well, AMD did go back up, and on Friday I sold another Call. The same Call as the first one. I received a premium of $2.70 for $2700.<\/p>\n Let\u2019s review what I did<\/strong>. On 5\/28 I sold a Call for a premium of $2.65 for $2650. On 8\/27 I did a \u201cBuy to Close\u201d with the premium at $2.15. I paid back $2150 of the $2650 I brought in with the selling of the Call, for a $500 profit. On 8\/30 I re-sold the same Call for $2.70 to bring in $2700. If I keep this option until expiration I\u2019ll keep the entire $2700. If I do another \u201cBuy to Close\u201d we\u2019ll have to see where the premium is to see how much I\u2019ll make. Whatever I do I keep the $500 I locked in, and I will make more money, still to be determined.<\/p>\n This is a great example of making an adjustment trade to better my position.<\/p>\n On 7\/30\/19 I bought 1000 shares of Twitter (TWTR) for $42.90 per shares. Also on 7\/30 I sold a Call bringing in a $530 premium. I did not get assigned so I also kept my stock. On 8\/2 I sold another Call bringing in $900. Again, I wasn\u2019t assigned so I kept the stock. On 8\/20 I sold another Call bringing in a $600 premium. Again, I wasn\u2019t assigned. Again, I keep my stock. At this point I bought the 1000 shares for $42,900 and sold 3 Calls for a total profit of $1730. The total profit would have been $2030 but the 2nd Call where I brought in $900, I did a \u201cBuy to Close\u201d and only kept $600 of the $900.<\/p>\n This week I got a little nervous with the TWTR\u2019s candlestick chart. It\u2019s in a \u201cWedge Pattern.\u201d I cannot determine where I think the stock is gonna go. It could do a breakout to the north, but very possibly it could go down. I decided I didn\u2019t want to be in TWTR any more, at least for the time being. The stock was below where I bought in so I didn\u2019t want to just sell. And I couldn\u2019t get a good premium for the Strike price I\u2019ve been working with, $43. \u00a0Remember, I bought at $42.90. In my past Calls if I got assigned at $43 I would have made 10\u00a2 on the stock sale. At this point I couldn\u2019t get a good premium for the $43 Call. I decided to go with a lower Strike Price for an OK premium, and if I got assigned I\u2019d lose a little on the stock sale.<\/p>\n Since I had already brought is $1730 in premiums, and I wanted out of the stock, I sold a Call with a $42 Strike Price. If assigned I\u2019d lose 90\u00a2 on the stock for a $900 loss. This is actually what I wanted to happen. I just wanted out! With this $42 Call I sold I received a premium of 40\u00a2 for another $400. Now my total premiums for all my TWTR Calls was up to $2130. I sold this Call knowing I had a good chance of being assigned, and I was.<\/p>\n 8\/26\/19 \u2013 Sell to Open 10 TWTR 8\/30\/19 $42.00 C @ 40\u00a2 (+$400)<\/strong><\/p>\n 8\/30\/19 \u2013 Expired 10 TWTR 8\/30\/19 $42.00 C <\/strong><\/p>\n I keep the $400 premium but I was assigned.<\/p>\n I bought the stock at $42.90 and was assigned at $42 with the Call above. I took a $900 lose on the stock but I\u2019m out! Like I said, I\u2019m a little nervous where TWTR might go. It could go up but I\u2019m thinking down. We\u2019ll see this week and I\u2019ll report. Either way, I brought in a total of $2130 in premiums and lost $900 on the stock. On all the TWTR trades I\u2019m up $1230. That\u2019s 2.9% return on my $42,900 investment in 1 month. Not bad!<\/p>\n 7\/30\/19 \u2013 Buy 1000 Shares TWTR @ $42.90<\/strong><\/p>\n 8\/30\/19 \u2013 Assigned 1000 Shares TWTR @ $42.00 <\/strong><\/p>\n This week I made $500 with the AMD trade, $400 on the TWTR Call and a $900 loss on the TWTR assignment. This was an even week!<\/p>\nProfit +$500<\/strong><\/span><\/h4>\n
\nProfit +$400<\/strong><\/span><\/h4>\n
\n\u00a0Loss -$900<\/strong><\/span><\/h4>\n
\nTotal Weekly Gain $0<\/strong><\/h4>\n
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