Results Week Ending 2/19/21
This week might be the most amount of trades I had expire on a single Expiration Date. The main reason for this is because I had a lot of trades expire in “The Grasshopper Field.” I’ll talk more about this in my Grasshopper Report.
I’m very happy with this week for a few reasons. I’m happy because I was assigned on 8 positions. This put a lot of money back into my margin buying power. I’ve been writing about having more money on the sideline in the case of the inevitable correct. It makes me happy to know that with assignment I made the money I signed up for, and I’m able to better manage my margin account correctly.
Believe it or not, I’m happy I’m focused on keeping my weekly gain in the 10k area. Risk comes with taking in 20 or 30 grand a week. The main risk is I’m fully invested. If the correction comes when I’m fully invested I’ll have problems. Working on margin, if the correction comes when I’m fully invested, I’m sure to get a margin call. If that happens I have to deposit more money into my account or liquidate some of my positions. I want to avoid this at all costs. The cost is I take in less money because I’m being responsible, NOT GREEDY! Lets hope I continue on this path. If I do I’ll have a great year.
When I have more money on the sidelines I’ll prevent a margin call, plus I’ll have money available when the correction comes to get into good positions at a lower price. Right now I’m in this position and I was still able to lock in 12k this week. This makes me happy!
I have a lot of positions to list so I’ll get started.
Mark
This was a 10 contract position on a low priced stock. This position was in “The Grasshopper Field.” This was a rare early assignment. This was a Covered Call to expire on Friday but someone exercised their right to buy the stock at the Strike Price on Wednesday.
I bought the stock at $2.30 and sold the $2.50 Call. I made $200 on the stock sale and made $250 as a premium for a total of $450. This Covered Call gave me a Return on Investment (ROI) of 19.5%. This was a great Grasshopper Trade and it’s the type of trade you must look for.
1/11/21 – Buy 1000 Shares Mark @ $2.30
2/16/21 – Assigned 1000 Shares MARK @ $2.50
Profit +$200
1/11/21 – Sell to Open 10 MARK 2/19/21 $2.50 C @ 25¢ (+$250)
2/16/21 – Early Assignment 10 MARK 2/19/21 $2.50 C
Profit +$250
Draftkings
A Covered Call without assignment.
1/27/21 – Sell to Open 10 DKNG 2/19/21 $65.00 C @ $1.65 (+$1650)
1/19/21 – Expired 10 DKNG 2/19/21 $65.00 C
Profit +$1650
Atlas Air Worldwide
I got into this trade right after I heard the report about the amount of goods being sent to America from China. They’re sending so much the ships are lined up to get into our ports. With Trump’s trade policies gone the goods coming in is overwhelming our ports and the shipping companies are racking in tons of profit. With this report I looked into shipping stocks and I picked AAWW. All shipping stocks went up and my Covered Call worked nicely. I was assigned.
2/12/21 – Buy 500 Shares AAWW @ $56.90
2/19/21 – Assigned 500 Shares AAWW @ $57.50
Profit $300
2/12/21 – Sell to Open 5 AAWW 2/19/21 $57.50 C @ $2.00 (+$1000)
2/19/21 – Expired 5 AAWW 2/19/21 $57.50 C
Profit +$1000
Peloton
I bought this 1000 shares of PTON when the stock was on a run. The $167.60 is well above the present stock price. I’m hoping the stock recovers, if not I’ll have to put some thought into how to handle these 1000 shares. Clearly this Covered Call was not assigned.
2/12/21 – Sell to Open 10 PTON 2/19/21 $167.60 C @ $1.00 (+$1000)
2/19/21 – Expired 10 PTON 2/19/21 $167.50 C
Profit +$1000
Xpeng
This Chinese electric car maker dropped this week. I’m looking for it to recover this week. This position I was not assigned on.
2/16/21 – Sell to Open 10 XPEV 2/19/21 $47.00 C @ $1.50 (+$1500)
2/19/21 – Expired 10 XPEV 2/19/21 $47.00 C
Profit +$1500
NIO
All electric car makers dropped this week and NIO was no exception. I was not assigned on this Covered Call.
2/16/21 – Sell to Open 10 NIO 2/19/21 $66.00 C @ 65¢ (+$650)
2/19/21 – Expired 10 NIO 2/19 $66.00 C
Profit +$650
Lexinfintech
Covered Call with assignment. This was a nice 3 day trade.
2/19/21 – Buy 1000 Shares LX @ $14.06
2/19/21 – Assigned 1000 Shares LX @ $15.00
Profit +$940
2/16/21 – Sell to Open 10 LX 2/19/21 $15.00 C @ 40¢ (+$400)
2/19/21 – Expired 10 LX 2/19/21 $15.00 C
Profit +$400
Peloton
I squeezed in this 10 contract Call with a 2 day trade.
2/17/21 – Sell to Open 10 PTON 2/19/21 $148.00 C @ 45¢ (+$450)
2/19/21 – Expired 10 PTON 2/19/21 $148.00 C
Profit +$450
Advanced Micro Devices
Thursday afternoon at the close I got into this trade. Looking at the charts I felt AMD was gonna go up the next day so I bought the stock and sold a Call very close to At-the-Money. Made 15¢ on the stock assignment for $150 and brought in a $450 premium. $600 bucks for a 1 day trade. Not bad!
2/18/21 – Buy 1000 Shares AMD @ $88.85
2/19/21 – Assigned 1000 Shares AMD @ $89.00
Profit +$150
2/18/21 – Sell to Open 10 AMD 2/19/21 $89.00 C @ 45¢ (+$450)
2/19/21 – Expired 10 AMD 2/19/21 $89.00 C
Profit +$450
Palantir
This was an Expiration Day trade. I made it in the morning and it expired at the close.
I’ll be writing about my Palantir position later.
2/19/21 – Sell to Open 70 PLTR 2/19/21 $30.00 C @ 25¢ (+$1750)
2/19/21 – Expired 70 PLTR 2.19/21 $30.00 C
Profit +$1750
The remaining trade were made for “The Grasshopper Field” so I’ll make comments in the Grasshopper Report.
Lexinfintech
2/8/21 – Buy 500 Shares LX @ $6.95
2/19/21 – Assigned 500 Shares LX @ $7.50
Profit +$275
2/8/21 – Sell to Open 5 LX 2/19/21 $7.50 C @ 50¢ (+$250)
2/19/21 – Expired 5 LX 2/19/21 $7.50 C
Profit +$250
Inseego
1/12/21 – Buy 300 Shares INSG @ $14.35
2/19/21 – Assigned 300 Shares SNSG 2/19/21 $15.00 C
Profit $195
1/12/21 – Sell to Open 3 INSG 2/19/21 $15.00 C @ $1.20 (+$360)
2/19/21 – Expired 3 INSG 2/19/21 $15.00 C
Profit +$360
U S Steel
1/25/21 – Buy 200 Shares X @ $17.90
2/19/21 – Assigned 200 Shares X @ $17.50
Loss -$80
2/8/21 – Sell to Open 2 X 2/19/21 $17.50 C @ 60¢ (+$120)
2/19/21 – Expired 2 X 2/19/21 $17.50 C
Profit +$120
2/10/21 – Sell to Open 1 INSG 2/19/21 $20.00 C @ $1.00 (+$100)
2/19/21 – Expired 1 INSG 2/19/21 $20.00 C
Profit +$100
Lexinfintech
2/10/21 – Buy 100 Shares LX @ $11.25
2/19/21 – Assigned 100 Shares LX @ $12.50
Profit +$125
2/10/21 – Sell to Open 1 LX 2/19/21 12.50 C @ 45¢ (+$45)
2/19/21 – Expired 1 LX 2/19/21 $12.50 C
Profit +$45
Inseego
2/10/21 – Sell to Open 1 INSG 2/19/21 $20.00 C @ $1.30 (+$130)
2/19/21 – Expired 1 INSG 2/19/21 $20.00 C
Profit +$130
NIO
2/16/21 – Sell to Open 1 NIO 2/19/21 $64.00 C @ $1.00 (+$100)
2/19/21 – Expired 1 NIO 2/19/21 $64.00 C
Profit +$100
Total Weekly Gain +$12,310
This was a great week, but what a list of trades! Whatever it takes!
Watch for the Grasshopper Report and watch for the report I’m going to write about my Palantir positions.
Have a great weekend!
Successful trading,
Steve
The Options Coach