I cannot complain about my 1st weekly results report of 2020.<\/p>\n
Today we concluded our 1st full week of trading for 2020, and this is my 1st week ending report.<\/p>\n
As you know I finished 2019 with a 101% return on the year. To me that is unbelievable and I\u2019m very happy. We just finished our 1st full week of trading for the year 2020 and my results are continuing on the same track. I am also very happy about this. However, my concern is growing that we will have a pullback soon. Not that I see anything that leads me to believe that but this market is on a crazy run, and I feel a correction at this time is not only normal, but healthy. I just hope if, and when, it does happen I have some cash on the sidelines to get in some positions at bargain prices.<\/p>\n
At the conclusion of this week I freed up a lot of cash with the selling out of positions, having options expire and getting assigned on stock. I will have a large margin account to start the week on Monday.<\/p>\n
I\u2019m gonna try to be very careful with my position selection in the coming week. I would love to find opportunities for Naked Calls. This is not the environment for Naked Calls but there are always opportunities around. One stock I\u2019m watching is Weight Watchers (WW). The stock has been on a big run and it might be time for a pullback. I really like the premiums. I didn\u2019t do anything this week because all my money was tied up. I\u2019m liking the 1 week options to sell with the Strike Price of $47 or $47.50. There are good premiums and they\u2019re $2 Out-of-the-Money. Could be a nice situation for a Naked Call.<\/p>\n
OK, let\u2019s get into this weeks trades. We\u2019ll start with Square.<\/p>\n
Square<\/strong><\/p>\n I bought a 10 contract Call back on 9\/5\/19 to expire 6\/19\/19. I probably could have gotten out earlier for more profit but with a decent amount of time to the contract I held on. Even now there\u2019s 6 months left to expiration but this is where Time Decay<\/a><\/span> starts eating away at the premium, plus I\u2019m trying to free up some cash. I had a $500 profit.<\/p>\n 9\/5\/19 \u2013 Buy to Open 10 SQ 6\/19\/20 $65.00 C @ $8.75 ($8750)<\/strong><\/p>\n 1\/10\/20 \u2013 Sell to Close 10 SQ 6\/19\/20 $65.00 C @ $9.25 ($9250)<\/strong><\/p>\n Walmart<\/strong><\/p>\n I have a 10 contract LEAPS with Walmart in my Stock Alternative Portfolio<\/strong>. I\u2019m trying to sell Calls against these options to bring in extra money. When you sell a Call against a LEAPS in this way it\u2019s a Diagonal Call Spread. I love the strategy. I just go out a bit with the Strike Price to try an ensure I don\u2019t get assigned. Here with the stock in the $119 area I sold the $125 Calls. I didn\u2019t get assigned and I keep the $250 premium. I look at this premium as a dividend. It was a 3 week option and I brought in $250. If I do this 12 times a year I\u2019ll bring in an extra $3000 for the year. Like I said, for a stock this size it like a dividend.<\/p>\n 12\/16\/19 \u2013 Sell to Open 10 WMT 1\/10\/20 $125.00 C @ 25\u00a2 (+$250)<\/strong><\/p>\n 1\/10\/20 \u2013 Expired 10 WMT 1\/10\/20 $125.00 C <\/strong><\/p>\n Marvell<\/strong><\/p>\n I sold a Call against my 1000 shares of MRVL and I wasn\u2019t assigned. I keep the stock and I keep the $350 premium.<\/p>\n 1\/2\/20 \u2013 Sell to Open 10 MRVL 1\/10\/20 $27.50 C @ 35\u00a2 (+$350)<\/strong><\/p>\n\u00a0Profit +$500<\/strong><\/span><\/h4>\n
\n\u00a0Profit +$250<\/strong><\/span><\/h4>\n
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