The coronavirus has many investors unsure what to do, and I\u2019m no exception. As I\u2019ve been writing, I\u2019m very nervous. Today was a down day but the market has been shrugging off the potential problem this virus can cause.<\/p>\n
My nervousness has me a little unsure of which way I want to play my position. In fact this week I made two mistakes and they caused me to lose some money.<\/p>\n
The two mistakes involve Micron and Weight Watchers. I\u2019ll explain one at a time.<\/p>\n
On 1\/13 I bought 1000 shares of Micron at $57.50. At that time I also sold a $58 Call. I did not get assigned and kept my $400 premium. After this the stock came straight down for about 6 days on virus fear. On 2\/3 with the stock down to $53.60 I figured the Virus was gonna hurt the market for a while. When you\u2019re a trader you try to find ways to bring in money even when the market is going down. There was huge investors talking about how they felt the market was in for some big trouble. I decided to play Micron like it was going down for a while. With the stock at $53.60 I sold a $55 Call bringing in a $500 premium. As \u201cMurphy\u2019s Law would have it, as soon as I sold the Call the stock shot up. I bought the stock at $57.50, I didn\u2019t want to get assigned at my Strike Price of $55. When I sold the Call I figured the stock was going down and I wouldn\u2019t get assigned. Today at the close Micron was at $56.90. I was set to get assigned. I decided to take a loss and do a \u201cBuy to Close\u201d to get out of the obligation to deliver the stock. Micron received a few upgrades this week so I decided to hold on to the stock. I could have accepted assignment losing $2500 on the stock, or I could have done a Roll-Out. I decided to just do the \u201cBuy to Close\u201d and keep my stock and take a $1400 loss. I sold the Call for a $500 and it cost me $1900 to close the position.<\/p>\n
2\/3\/20 \u2013 Sell to Open 10 MU 2\/7\/20 $55.00 C @ 50\u00a2 (+$500)<\/strong><\/p>\n 2\/7\/20 \u2013 Buy to Close 10 MU 2\/7\/20 $55.00 C @ $1.90 (-$1900)<\/strong><\/p>\n On assignment I would have lost $2500 on the stock sale. I\u2019m hoping the stock moves higher next week and I get my loss back.<\/p>\n With Weight Watchers I had the same problem. I bought the stock at $39.40, and like Micron the stock went down. It went all the way down to $33.90 when I sold a $35 Call. At the close today the stock was at $35.99 and I was set to get assigned. I did the same as with Micron. I did a \u201cBuy to Close\u201d so I didn\u2019t take a big loss on the stock. However, I did take a loss on the option. I sold the Call for a $550 premium and the \u201cBuy to Close\u201d cost me $1100, taking a $550 loss.<\/p>\n 2\/3\/20 \u2013 Sell to Open 10 WW 2\/7\/20 $35.00 C @ 55\u00a2 (+$550)<\/strong><\/p>\n 2\/7\/20 \u2013 Buy to Close 10 WW 2\/7\/20 $35.00 C @ $1.10 (-$1100)<\/strong><\/p>\n For my last trade to report, I sold 100 shares of Apple. On 1\/21 I bought 200 shares of Apple at $317.50 and sold a Call. I didn\u2019t get assigned. Today I was still holding the 200 shares. To free up some money I sold 100 of the shares at $320. I\u2019ll see what I\u2019m gonna do with the other 100 shares on Monday<\/p>\n 1\/21\/20 \u2013 Buy 100 Shares AAPL @ $317.50<\/strong><\/p>\n 2\/7\/20 \u2013 Sell 100 Shares AAPL @ $320.00<\/strong><\/p>\n I\u2019m not very happy about the losses I took this week! But I\u2019ve been doing great and I\u2019m just gonna have to accept them. I figured with the market moving the way it\u2019s been placing the two \u201cBuy to Close\u201d orders was better than carrying the options with Roll-Outs. I\u2019ll get it back!<\/p>\n Have a great weekend!<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" The coronavirus has many investors unsure what to do, and I\u2019m no exception. As I\u2019ve been writing, I\u2019m very nervous. Today was a down day but the market has been shrugging off the potential problem this virus can cause. My nervousness has me a little unsure of which way I want to play my position. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-7123","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-1QT","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"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=7123"}],"version-history":[{"count":2,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7123\/revisions"}],"predecessor-version":[{"id":9756,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/7123\/revisions\/9756"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Loss -$1400<\/strong><\/span><\/h4>\n
\nLoss -$550<\/strong><\/span><\/h4>\n
\nProfit+$250<\/strong><\/span><\/h4>\n
\n