Trades with AMAT, XPEV & PTON
My busy day continues with 3 more trades. On 3/3 I bought 1000 shares of Applied Materials (AMAT) at $115.85. This is the 3rd week in a row that I brought in a nice premium on the same shares. This week I sold 10 contracts of the 3/19/21 $116 Calls for a premium of $1.50 for $1500.
Sell to Open 10 AMAT 3/19/21 $16.00 C @ $1.50 (+$15.00)
This trade gets a Risk Factor 1.
On 2/16 I bought 1000 shares of Xpeng (XPEV) at $46.90. With the NASDAQ sell-off the stock pulled back to the $25 area. This makes it very tough to sell Calls because you don’t want to use a Strike Price below your buy-in price.
The stock has been recovering and today with the stock at $35.60 I decided to sell a $38 Call. If I get assigned I’ll lose a lot of money on the stock sale.
I have a lot of money in my margin buying power because my positions have been going up, and I was assigned on some high priced stocks this past Friday. Instead of buying more positions to sell Calls and leaving XPEV idle, I decided to sell a Call against shares I already own. If it looks like I will get assigned I’ll buy more shares of XPEV to deliver the shares. So, to bring in more premium this week I don’t have to buy more shares of a new stock. If you don’t understand what I’m doing here send me an email and I’ll explain further.
Sell to Open 10 XPEV 3/19/21 $38.00 C @ 55¢ (+$550)
This trade gets a Risk Factor 3 and I hope I don’t get assigned.
This last trade I sold a Put on Peloton. I’ve been involved in Peloton (PTON) a long time and I don’t think the stock will get down to $100. I sold 10 contracts of the PTON 3/19/21 $100.00 Puts at $75¢ for $750.
Sell to Open 10 PTON 3/19/21 $100.00 P @ 75¢ (+$750)
This trade gets a Risk Factor 1. If the stock gets down to $100 I’ll take it!
Successful trading,
Steve
The Options Coach