Results Week Ending 1/22/21
For my strategy this week was much better than last. Last week I didn’t get assigned on much and I entered this week with a ton of positions to sell Calls against. This led to a very stressful Monday morning. This week will be different since I was assigned on PLTR, SNAP, XPEV and NVDA.
I was very close to getting assigned on PTON but the stock closed at $159.75. I had 40 contracts of the PTON $160 Calls sold. Getting new Calls sold on these 4000 shares of PTON will be my #1 priority for Monday morning.
Besides getting assigned on some big positions this Monday should be less stressful because I have positions that I already have Calls sold to expire next Friday. These are NKLA, PLTR, NIO, MOMO, TSLA and a number of Grasshopper trades. The only shares I’m holding that are without a Call sold are 1000 shares of DKNG, 4000 of PTON and 100 of NIO for a Grasshopper trade. I like how I’m positioned.
Let’s talk about “The Grasshopper Field.” I’d like to thank everyone who took the time to comment on the new section. I’m happy you like it!
If you are serious about becoming an options trader it’s very important to read the Grasshopper Trades and the explanations of why I made it. Especially the ones that don’t get assigned. It’s important to see how I manage the position if the Covered call doesn’t work out the way I want. Also, it’s very important to read the trades I make in my main trading account. The only difference is these positions are much bigger. The strategy I use is the same for both trades. It’s also important to see how I manage the bigger trades to see how to make a trade that didn’t go well into a winner. Not Preparing to Win is Preparing to Lose!
OK, let’s get into this week’s trades. It was another great week! About one third of the week’s gain was from my Apple LEAPS sale. I held the position for about 4 months and Apple finally moved this week. The 4 contracts I sold gave me over $12 thousand in profit. I had a ton of other trades so let’s get to it.
NEO
I bought the stock on 12/21 and have sold Calls. I decided to sell the stock with a $1200 profit.
12/21/20 – Buy 1000 Shares NEO @ $52.80
1/19/21 – Sell 1000 Shares NEO @ $54.00
Profit +$1200
Peloton
I had a 20 contract Call sold and I decided to do a “Buy to Close” locking most of the money and putting it back to work.
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
Peloton
Another 10 contracts I did a “Buy to Close” on locking in the money.
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
Apple
Sold my Apple LEAPS.
AAPL Post 4:1 Split adjusted LEAPS Position – Sell to Close
7/23/20 – Buy to Open 1 AAPL 6/17/22 $380.00 C @ $67.50
1/21/21 – Sell to Close 4 AAPL 6/17/22 $95 C @ $47.00
Profit +$12,048
Palantir
Assigned on this 10 contract Covered Call.
11/25/20 – Buy 1000 Shares PLTR @ $28.40
1/22/21 – Assigned 1000 Shares PLTR @ $28.50
Profit +$100
1/19/21 – Sell to Open 10 PLTR 1/22/21 $28.50 C @ 80¢ (+$800)
1/22/21 – Expired 10 PLTR 1/22/21 $28.50 C
Profit +$800
Snap
Assigned on this Covered Call.
12/24/20 – Buy 1000 Shares SNAP @ $52.00
1/22/21 – Assigned 1000 Shares SNAP @ $52.50
Profit +$500
1/19/21 – Sell to Open 10 SNAP 1/22/21 $52.50 C @ 60¢ (+$600)
1/22/21 – Expired 10 SNAP 1/22/21 $52.50 C
Profit +$600
Peloton
This is a huge trade, but I received a huge premium. Was not assigned. Stock closed at $159.75.
1/19/21 – Sell to Open 40 PTON 1/22/21 $160.00 C @ $1.25 (+$5000)
1/22/21 – Expired 40 PTON 1/22/21 $160.00 C @ $1.25
Profit +$5000
Xpeng
Covered Call with assignment.
1/20/21 – Buy 1000 Shares XPEV @ $54.00
1/22/21 – Assigned 1000 Shares XPEV @ $54.50
Profit +$500
1/20/21 – Sell to Open 10 XPEV 1/22/21 $54.50 C @ $1.25 (+$1250)
1/22/21 – Expired 10 XPEV 1/22/21 $54.50 C
Profit +$1250
Tesla
One day Covered Call without assignment. I already have another $860 Call sold for next week for a premium of $5800.
1/21/21 – Sell to Open 2 TSLA 1/22/21 $860.00 C @ $7.50 (+$1500)
1/22/21 – Expired 2 TSLA 1/22/21 $860.00 C
Profit +$1500
Nvidia
This was a 1 day Covered Call. I entered for the premium. I picked a Strike Price to get assigned. I’ll take the 1 day, low risk trade for $1000.
1/21/21 – Buy 200 Shares NVDA @ $544.50
1/22/21 – Assigned 200 Shares NVDA @ $545.00
Profit +$100
1/21/21 – Sell to Open 2 NVDA 1/22/21 $545.00 C @ $4.50 (+$900)
1/22/21 – Expired 2 NVDA 1/22/21 $545.00 C
Profit +$900
NIO
1 contract Grasshopper trade without assignment. Nio’s on the move!
1/19/21 – Sell to Open 1 NIO 1/22/21 $64.00 C @ 50¢ (+$50)
1/22/21 – Expired 1/NIO 1/22/21 $64.00 C
Profit +$50
Palantir
1 contract Grasshopper trade with assignment.
1/11/21 – Buy 100 Shares PLTR @ $25.95
1/22/21 – Assigned 100 Shares PLTR @ $27.00
Profit +$105
1/19/21 – Sell to Open 1 PLTR 1/22/21 $27.00 C @ 95¢ (+$95)
1/22/21 – Expired 1 PLTR 1/22/21 $27.00 C
Profit +$95
Total Weekly Gain +$33,548
This is, by far, the best start of a year I ever had. In the first 3 week I locked in a huge amount of money. I started with a much bigger account this year, $850,000, and in the first 3 week I’m already up over 10%. If this continues for the entire year, and we get rid of COVID, I’m taking everyone to Mexico!
Keep studying. Work on the Grasshopper Trades. Develop a well planned strategy excluding greed and lots of discipline. You will do very well.
Keep the question coming, and if near NYC I’ll sit with you for as long as you need.
Watch for the Grasshopper weekly report.
Enjoy the weekend!
Successful trading,
Steve
The Options Coach