A Lot to Report From a Stressful Morning
This has been the most stressful day in a long time. With the market not having a good week last week I was left with a bunch of positions that were not assigned. Not only did I have the larger stock positions in my trading account to deal with, but I also had 3 stocks in “The Grasshopper Field” that were not assigned.
The market opened on a good note, but you never know how long it’s going to stay positive these days. On the open I was trying to manage about 10 positions at the same time. Checking the Strike Prices and trying to decide if I wanted to go with the Expiration of 1/22 or 1/29. This is a short week so the premiums are not as good as a full week. Especially when the stocks are a little lower, recovering from last week.
Then I had to throw the grasshopper trade report in there. I was filled on a few Grasshopper trades and I like to get that out in a timely manner since most readers are Grasshoppers.
While I was writing the Grasshopper report I was placing and getting filled on trades in my trading account…..STRESSFUL!!!
OK, I’m warming down a little and I’d like to report some trades I made in my main trading account.
First I’ll go over positions I closed.
I bought 1000 of NEO on 12/21/20 at $52.80. The stock is up today and I decided to lock in some profit. I sold my shares at $54 for a $1200 profit. While I was in this stock I sold Calls, was assigned, bought the stock back and sold more Calls. I had a very successful run with NEO.
12/21/20 – Buy 1000 Shares NEO @ $52.80
1/19/21 – Sell 1000 Shares NEO @ $54.00
Profit +$1200
I own 2000 shares of Peloton at $134.12 and sold this Call below. With the stock down today on a downgrade from UBS, I decided to do a “Buy to Close” and lock in the profit. I sold the Call at $3.60 and bought to close today at 30¢ locking in a $6600 profit.
1/8/21 – Sell to Open 20 PTON 1/22/21 $170.00 C @ $3.60 (+$7200)
1/19/21 – Buy to Close 20 PTON 1/22/21 $170.00 C @ 30¢ (-$600)
Profit +$6600
I also bought another 1000 shares at $167 to cover a Naked Call. The Naked Call was also a $170 Strike Price. I received a premium on the sale of $2.50 and also bought back at 30¢. The profit is $2200.
1/12/21 – Sell to Open 10 PTON 1/22/21 $170.00 C @ $2.50 (+$2500)
1/19/21 – Buy to Close 10 PTON 1/22/21 $170.00 C @ 30¢ (-$300)
Profit +$2200
I got out of these positions with the hope the stock will bounce back and I get more Calls sold this week. Lets see what happens!
All the Calls below are on stocks that were not assigned last week. They are all Covered Calls on previously owned stock so they all get a Risk Factor 1. Notice some expire this week and some I went out to next week. The Expiration Date was determined by the Premium I liked for the Strike Price I wanted.
Sell to Open 10 NKLS 1/29/21 $22.50 C @ 85¢ (+$850)
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Sell to Open 10 PLTR 1/22/21 $28.50 C @ 80¢ (+$800)
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Sell to Open 10 SNAP 1/22/21 $52.50 C @ 60¢ (+$600)
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Sell top Open 10 NIO 1/29/21 $66.00 C @ $ 1.15 (+$1150)
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Sell to Open 10 MOMO 1/29/21 $16.00 C @ 60¢ (+$600)
As you can see I’ve been very busy. You add all these trades to the Grasshopper trades, the Grasshopper report, and you have a very stressful morning.
If you have any questions send me an email.
Successful trading,
Steve
The Options Coach