Results Week Ending 1/15/21
In December I wrote about curtailing my trades until the end of the year and picking Expiration Dates of 1/8/21 and 1/15/21 to move any further profits to the new year. Both last week and this week these trades have been expiring. With all these trades coming to an end last week was huge and this week was even bigger. The only problem is I have a ton of trades to report. My trade count also grew because of my additional Grasshopper Trades.
Because of the amount of trades I’ll try to keep trade explanations to a minimum. One I must explain because it’s a great learning tool is my Tesla Roll-out. I’ll move this series of trades to the first spot.
Tesla
In November the electric car makers, more specifically Tesla, move horizontally. I felt they were ready for a little rest, and maybe even a pullback. With this thinking I sold 2 Tesla Naked Calls. On 11/23, with the stock in the area of $515, I sold 2 11/27/20 $530 Calls. I received a premium of $10 for $2000. 11/23 was a Monday and this Call was to expire on Friday. My prediction could not have been any more wrong. From the time I sold the Naked Call the stock went straight up. And it continues today!
On Expiration Day, 11/27, the stock was up to $593 and I was still Naked. If I deliver the stock I’d have to buy the 200 shares at $593 and deliver at my Strike Price of $530. This would be a $12,600 loss. It was time to do some thinking to figure a way to not take such a hit. I did take in a $2000 premium but it would still be a $10,600 loss.
I decided to do a Roll-out. The first thing I did was buy the stock. This way my rolled out position would be covered. Look below. On 11/27 I bought 200 shares of Tesla at $593.50. Then I did a Buy to Close on my Naked option so I did have to deliver the stock. The Call I sold I received a premium of $10 ($2000). To do the Buy to Close it cost me $65 ($13,000). I am now down $11,000.
At this point I own 200 shares of Tesla and I’m out of the obligation of delivering the stock. The only thing to do is sell another Call as the Roll-out. Friday ran out of time so I had to wait until Monday. On Monday the stock continued to run higher and it was moving fast. One good thing is I owned the stock.
I kept placing orders and the stock kept moving. To tell you the truth I was in no rush because the stock kept going higher. I was finally filled on 12/7. With the stock at $610 I sold 2 TSLA 1/15/21 $620 Calls for a premium of $70. I only went $10 Out-of-the-Money to the $620 Strike Price for the higher premium. The $70 premium gave me $14,000. As crazy as it sounds the stock continued up and this Friday, 1/15, the stock closed at $826. And it was as high as $665. I was at $620 with a huge Opportunity Lost. However, the Roll-out worked great. Not only did I not lose the $10,600 but I profited $8300. The Roll-out gave me $3000 and the stock sale with assignment gave me a profit of $5300.
When I did the Buy to Close I took a loss in 2020. All the profit from the Roll-out is in 2021. This will help my 2020 taxes. This is why I rolled out to 1/15/21.
Any questions on this send me an email.
Tesla Roll-Out
11/23/20 – Sell to Open 2 TSLA 11/27/20 $530.00 C @ $10.00 (+$2000)
11/27/20 – Buy to Close 2 TSLA 11/27/20 $530.00 C @ $65.00 (-13,000)
12/7/20 – Sell to Open 2 TSLA 1/15/21 $620.00 C @ $70.00 (+$14,000)
Profit +$3000
Covering the Rolled Out Position
11/27/20 – Buy 200 Shares TSLA @ $593.50
1/15/21 – Assigned 200 Shares TSLA @ $620.00
Profit +$5300
Jabil
This is a LEAPS position I sold with 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
Peloton
This was one of the Calls I pushed to the new year. I went out 2 weeks and got a great premium. This was a Covered Call. I was not assigned. I still own the stock.
12/30/20 – Sell to Open 20 PTON 1/15/21 $165.00 C @ $4.30 (+$8600)
1/15/21 – Expired 20 PTON 1/15/21 $165.00 C
Profit +$8600
Peloton
This was a Naked Call. No investment! Expired without assignment.
12/30/20 – Sell to Open 10 PTON 1/15/21 $175.00 C @ $2.25 (+$2250)
1/15/21 – Expired 10 PTON 1/15/21 $175.00 C
Profit +$2250
Vaneck Vectors Gold Miners
Expired without assignment.
9/28/20 – Sell to Open 10 GDX 1/15/21 $46.00 C @ $1.40 (+$1400)
1/15/21 – Expired 10 GDX 1/15/21 $46.00 C
Profit +$1400
Draftkings
I bought DKNG in November and the stock pulled back. To get a nice premium I sold a Call way Out-of-the-Money and far into the future. I was not assigned. I still own the stock.
11/5/20 – Sell to Open 10 DKNG 1/15/21 $65.00 C @ $1.10 (+$1100)
1/15/21 – Expired 10 DKNG 1/15/21 $65.00 C
Profit +$1100
Inseego
I was assigned on this Covered Call. After buying the stock it backed off. In order to get a nice premium I went out 5 months with the Expiration Date. I bought the stock at $12.75. I sold an In-the-Money Call at $12.50 to get a decent premium. The next Strike Price was $15. I was fully aware I could get assigned losing money. I was assigned and I lost 25¢ on the 1100 shares.
7/28/20 – Buy 1100 Shares INSG @ $12.75
1/15/21 – Assigned 1100 Shares INSG @ $12.50
Loss -$275
12/2/20 – Sell to Open 11 INSG 1/15/21 $12.50 C @ 40¢ (+$440)
1/15/21 – Expired 11 INSG 1/15/21 $12.50 C
Profit +$440
Nikola
Covered Call without assignment.
12/15/20 – Sell to Open 10 NKLA 1/15/21 $22.50 C @ 80¢ (+$800)
1/15/21 – Expired 10 NKLA 1/15/21 $22.50 C
Profit +$800
Palantir
Another Call I pushed to the new year. Because of the time of contract I received a great premium. Covered Call without assignment.
12/18/20 – Sell to Open 20 PLTR 1/15/21 $29.00 C @ $2.15 (+$4300)
1/15/21 – Expired 20 PLTR 1/15/21 $29.00 C
Profit +$4300
Snap
Covered Call without assignment.
1/7/21 – Sell to Open 10 SNAP 1/15/21 $54.00 C @ $1.00 (+$1000)
1/15/21 – Expired 10 SNAP 1/15/21 $54.00 C
Profit +$1000
NEO
Covered Call without assignment.
1/11/21 – Sell to Open 10 NEO 1/15/21 $55.00 C @ 80¢ (+$800)
1/15/21 – Expired 10 NEO 1/15/21 $55.00 C
Profit +$800
Tesla
Covered Call without assignment. But look at the premium. Hope to get another $5000 premium this week.
1/12/21 – Sell to Open 2 TSLA 1/15/21 $860.00 C @ $25.00 (+$5000)
1/15/21 – Expired 2 TSLA 1/15/21 $860.00 C
Profit +$5000
NIO
Covered Call without assignment.
1/12/21 – Sell to Open 10 NIO 1/15/21 $66.00 C @ $1.60 (+$1600)
1/15/21 – Expired 10 NIO 1/15/21 $66.00 C
Profit +$1600
MOMO
Another Covered Call without assignment.
1/13/21 – Sell to Open 10 MOMO 1/15/21 $16.00 C @ 65¢ (+$650)
1/15/21 – Expired 10 MOMO 1/15/21 $16.00 C
Profit +$650
NIO
This was the 1 contract Grasshopper trade. This is also listed in “The Grasshopper Field.” It was a Covered Call without assignment.
1/12/21 – Sell to Open 1 NIO 1/15/21 $65.00 C @ $2.00 (+$200)
1/15/21 – Expired 1 NIO 1/15/21 $65.00 C
Profit +$200
Workhorse
Grasshopper trade. A Covered Call without assignment.
1/13/21 – Sell to Open 1 WKHS 1/15/21 $25.50 C @ 75¢ (+$75)
1/15/21 – Expired 1 WKHS 1/15/21 $25.50 C
Profit +$75
Palantir
This was a same day Covered Call without assignment. I sold the Call on Friday and it expired at the close.
1/15/21 – Sell to Open 1 PLTR 1/15/21 $28.00 C @ 51¢ (+$51)
1/15/21 – Expired 1 PLTR 1/15/21 $28.00 C
Profit +$51
Total Weekly Gain +$37,291
All the trades I made in December to expire in January really gave me a great start to 2021.
Have a great weekend!
Let me know if you have any questions.
Successful trading,
Steve
The Options Coach