Late Report of a XPEV Covered Call
Yesterday I had another busy day. I made a trade with Xpeng (XPEV) late in the day and didn’t get a chance to write the report.
Xpeng Inc is a China-based company engaged in design, development, production and sales of smart electric vehicles. The Company’s primary products are a type of sport utility vehicle named G3 and a type of four-door sports sedan named P7. The Company sells its vehicle products under the brand Xpeng. It also provides a range of services to the clients, including supercharging service, maintenance service, ride-hailing service and vehicle leasing service.
I’ve been watching this stock for a while and decided to jump in. I bought 1000 shares of the stock at $54 and sold a 10 contract 1/22/21 $54.50 Call for a premium of $1.25 for $1250. This is not bad for a 2 day position but I could have done better. The stock was up in the high 50’s. I placed an order to buy the stock at $54 before going to physical therapy for my shoulder. When I returned home I was filled on the order but the stock was down to $52. I was able to get the $1.25 premium but earlier I saw the premium at $2. This shoulder is costing me money lol.
Buy 1000 Shares XPEV @ $54.00
Sell to Open 10 XPEV 1/22/21 $54.50 C @ $1.25 (+$1250)
This is a Covered Call on a stock I own for the first time. I’m giving this trade a Risk Factor 2 because of the volatility.
Today I hope to get Calls sold on shares I own that are available for Covered Calls. Available I own 200 shares of Tesla, 1000 shares of Draftkings and 1000 shares of Palantir.
I’ll also be looking at Under Armour (UAA) for a Grasshopper trade. The stock received an upgrade today from Deutsche Bank. I would love a position expiring tomorrow but I’ll also look at next Friday’s expiration, 1/29/21.
Other stocks upgraded today will be on my watchlist today, Tellurian (TELL), Diebold Nixdorf (DBD), Alpha Pro Tech (APT).
Also, I still own 8 contracst of Apple LEAPS. 4 $95 LEAPS and 4 $110 LEAPS. I still have these from the stock split. I’m looking to get out of these with a $20,000 profit. Apple’s been on the move. There really isn’t a rush because they expire on 6/17/22. As of yesterday these positions were up about $16K and the stock is due to open up $2.
Successful trading,
Steve
The Options Coach