Sold My JBL LEAPS

I bought 10 Jabil (JBL) LEAPS way back on 12/19/19 for a premium of $7.80 for a total of $7800. I don’t normally hold options this long but doing so here paid off.

JBL is an “A” rated stock. When I bought this LEAPS the stock was at $41.45. Late December of 2019 and early 2020 the stock didn’t move much, then COVID came. The stock dipped all the way down to $18. If I went with a short term option this would have been one of those options that expire worthless. Since I went out to January of 2022 with my Strike Price I had hoped the stock would recover in time to not lose money. From it’s bottom of $18 during the COVID drop in March 2020 to today the stock fought back and today it hit $46. I still have a year until expiration but I decided I held this position long enough.

I bought this LEAPS with a premium of $7.80 and earlier I placed an order to sell at $8.80. I was filled and I had a $1000 profit.

12/19/19 – Buy to Open 10 JBL 1/21/22 $42.00 C @ $7.80

1/14/21 – Sell to Close 10 JBL 1/21/22 $42.00 C @ $8.80

Profit +$1000

What should we think about this trade? I held this position well over a year. Well, like I said, if I bought a short term option I would have lost my investment. The truth is I had a lot of time to this contract and I had full confidence the stock would recover. I did wait a long time but this trade became a winner, so I like it. My patience and confidence paid off and I ended up making $1000 on my $7800 investment. Great? no! But it is a 12.8% return. And this is on a trade that went bad. I’ll take it, put the money in my mattress and move on.

Successful trading,

Steve

The Options Coach