Results Week Ending 1/29/21
This week was another good week for locking in money, but it was not a very smooth week. The market was making huge swings up and down, and the swings were 500 or 600 points. Two of the days were down 600 points. Most of my positions handled the week in stride, I even got assigned on a few. However, a few positions caused my account some pain, mainly Palantir and Peloton. My two biggest positions.
I’m not too concerned with Peloton. I do own 5000 shares but I keep selling Calls bringing in great premiums. On Friday I sold another 40 contract Call to expire this coming Friday. It gave me a $19,000 premium. With premiums like this I can handle some stock fluctuation. Plus they announce earnings this week and I think they will be good because of the pandemic.
On the other hand, I’m worried about Palantir. I’m making a lot of trades and I’m having trouble reporting all of them. With my trading, teaching and physical Therapy I get a little overwhelmed. All my positions are listed on my “Active Positions” page.
Let me explain how I got into a little trouble with Palantir.
During the week I wrote a report that I sold 50 Naked contracts of PLTR. The stock was about $35 and I sold 50 contracts of the $45 Calls. I received a premium of $1.05 for $5250. I never thought the stock would hit $45 in the week. However, I did place a “Buy Stop” order at $44.75. This protected me from the stock moving above $45 if I was away from my computer.
On Wednesday I have physical therapy on my shoulder. Before I left my house the stock was going up pretty aggressively. I decided to do a “Buy to Close” on the 50 contract Call and get out of the position and the obligation to deliver the 5000 shares. I paid a premium of $1 leaving me with a $250 profit. It’s listed below.
I was in a rush to get to PT on time, the stock was about $40. I never canceled my “Buy Stop” order. I came out of PT and looked at my phone to see where the stock was. It was in the $43 area. I rushed home to cancel the “Buy Stop” order. When I opened my computer I noticed I was filled on my order to buy 5000 shares. This did not make me happy. I looked at the candlestick chart and saw the stock went up to $44.87. I was filled at $44.75. UNBELIEVABLE! For the next day and a half the stock dropped and closed at $35.18 on Friday. As the stock was dropping I tried to get another Call sold to bring in sold money but I was never filled.
I like this stock but I now own 7000 shares. More than I want. I’m hoping the market gets back on track this week and it moves up a little so I can get a nice Call sold. If not I’ll have to go out a bit on the Expiration Date. This will be a good opportunity for you to watch and see how I manage the position.
I also own another 2000 shares. These were also involved in Naked Calls. With these shares I did a Roll-out. They are listed on the “Active Positions” page.
Another problem is with the Palantir and Peloton stocks going down I went into a margin call. On Friday I sold another 40 contract Call bringing in $19,000 so this incoming cash got me out of the margin call. Plus I was assigned on NKLA and 2 Grasshopper trades, WKHS and APT which put a nice amount of money back into my margin account. I’m looking pretty good for this week. I already have $19,000 coming in from Peloton and a ton of stock available to sell Calls against. If Monday is an up day it will be busy!
Let’s take a look at the trades that gave me another good week.
Peloton
This is the Call I sold for the $19,000 premium. I did a “Buy to Close” and locked in $10,000 in a few hours.
1/25/21 – Sell to Open 40 PTON 1/29/21 $165.00 C @ $4.75 (+$19,000)
1/25/21 – Buy to Close 40 PTON 1/29/21 $165.00 C @ $2.25 (-$9000)
Profit +$10,000
Workhorse
With WKHS moving this week I exited my 5 contract LEAPS option making a $1250 profit.
9/22/20 – Buy to Open 5 WKHS 1/21/22 $30.00 C @ $15.00
1/28/21 – Sell to Close 5 WKHS 1/21/22 $30.00 C @ 17.50
Profit +$1250
Apple
I forget if I even reported this trade. It was a mistake. You might remember I bought a 5 contract LEAPS this week. When I first placed the order I mistakenly hit “Sell to Open” and not “Buy to Open.” No one in their right mind would sell a naked Apple LEAPS At-the-Money. I didn’t notice it until the next day. Luckily for me the stock went down. The result was I made $1100 on this mistake lol. Plus, the next day I bought the LEAPS I wanted and paid less money lol. The luck of the Irish!
1/27/21 – Sell to Open 5 AAPL 1/20/23 $145.00 C @ $29.95 (+$14,975)
1/28/21 – Buy to Close 5 AAPL 1/20/21 $145.00 C @ $27.75 (-$13,875)
Profit $1100
Palantir
This was the 50 contract Call I closed.
1/25/21 – Sell to Open 50 PLTR 1/29/21 $45.00 C @ $1.05 (+$5250)
1/27/21 – Buy to Close 50 PLTR 1/29/21 $45.00 C @ $1.00
Profit +$250
Nikola
One of my few positions to get assigned. It was a big help to my margin account.
11/30/20 – Buy 1000 Shares NKLA @ $20.60
1/29/21- Assigned 1000 Shares NKLA @ $22.50
Profit +$1900
1/19/21 – Sell to Open 10 NKLS 1/29/21 $22.50 C @ 85¢ (+$850)
1/29/21 – Expired 10 NKLA 1/29/21 $22.50 C
Profit +$850
NIO
Covered Call without assignment.
1/19/21 – Sell top Open 10 NIO 1/29/21 $66.00 C @ $ 1.15 (+$1150)
1/29/21 – Expired 10 NIO 1/29/21 $66.00 C
Profit +$1150
MOMO
Covered Call without assignment.
1/19/21 – Sell to Open 10 MOMO 1/29/21 $16.00 C @ 60¢ (+$600)
1/29/21 – Expired 10 MOMO 1/29/21 $16.00 C
Profit +$600
Peloton
I was writing about the 40 contract Calls with PTON. I own 5000 shares. This was another 10 contract Covered Call. I was not assigned.
1/19/21 – Sell to Open 10 PTON 1/29/21 $170.00 C @ 1.60 (+$1600)
1/29/21 – Expired 10 PTON 1/29/21 $170.00 C
Profit +$1600
Tesla
This was a Covered Call without assignment. Tesla did not have a good week. This was a great premium, hopefully I get another Call sold this week.
1/22/21 – Sell to Open 2 TSLA 1/29/21 $860.00 C @ $29.00 (+$5800)
1/29/21 – Expired 2 TSLA 1/29/21 $860.00 C
Profit +$5800
Peloton
When I did the “Buy to Close” on the 40 contract Call above locking in the $10,000. On Wednesday I sold another 40 Calls. I should have just stayed in the original Call. It worked out OK. This added another $6400.
1/27/21 – Sell to Open 40 PTON 1/29/21 $160.00 C @ $1.60 (+$6400)
1/29/21 – Expired 40 PTON 1/29/21 $160.00 C
Profit +$6400
Workhorse
I was assigned on this Grasshopper trade.
1/13/21 – Buy 100 Shares WKHS @ $25.00
1/29/21 – Assigned 100 Shares WKHS @ $25.50
Profit +$50
1/19/21 – Sell to Open 1 WKHS 1/29/21 $25.50 C $ 1.05 (+$105)
1/29/21 – Expired 1 WKHS 1/29/21 $25.50 C
Profit +$105
Alpha Pro Tech
Assigned on this 2 contract Grasshopper trade.
1/21/21 – Buy 200 Shares APT @ $13.62
1/29/21 – Assigned 200 Shares APT @ $14.00
Profit +$76
1/21/21 – Sell to Open 2 APT 1/29/21 $14.00 C @ 50¢ (+$100)
1/29/21 – Expired 2 APT 1/29/21 $14.00 C
Profit +$100
NIO
Grasshopper Covered Call without assignment.
1/25/21 – Sell to Open 1 NIO 1/29/21 $65.00 C @ $2.00 (+$200)
1/29/21 – Expired 1/NIO 1/29/21 $65.00 C
Profit +$200
U S Steel
Grasshopper trade without assignment.
1/25/21 – Sell to Open 1 X 1/29/21 $19.00 C @ $1.15 (+$115)
1/29/21 – Expired 1 X 1/29/21 $19.00
Profit +$115
Total Weekly Gain +$31,546
This was another good week but my account suffered a bit. A lot of stocks were down and my large positions with Palantir and Peloton didn’t help me, except for the premiums I brought in. I’d love to get assigned on everything this week. Any new Calls sold will have Strike Prices to give me the best shot for assignment.
Enjoy the weekend! Watch for this week’s Grasshopper Report.
Successful trading,
Steve
The Options Coach