Sold my Sherwin Williams LEAPS at the Close

Back on 2/8/21 Sherwin Williams (SHW) announced a 3 to 1 split. The split took place on 4/2/21. Since I had such great results with my Apple and Tesla splits back in August I decided to give this one a shot. I knew this one was not going to be anywhere near the AAPL and TSLA splits so I just bought a 1 contract Call. On 2/8/21 I bought 1 SWH 1/21/22 $740 Call for $71. This was a LEAPS option and I paid a total of $7100.

On 4/1/21 The stock did the 3 to 1 split and I ended up with 3 contracts of the SWH 1/21/21 $246.67 Call. The premium was decided by 3 and was now $27.

Today at the close I sold the 3 contracts for a premium of $27. This gave me a profit of $3.34 for $1002.

 

Post 3 to 1 Split “Sell to Close”

2/8/21 – Buy to Open 1 SHW 1/21/22 $740.00 C @ $71.00

4/5/21 – Sell to Close 3 SHW 1/21/22 $246.67 C @ $27.00 

Profit $1002 

I held this position for about 2 months. The return was 14%. Not the best for a splitting option but I’ll take it. I could have held longer because the option didn’t expire until 1/21/22  but I like taking profit, especially when buying options.

Any questions on this move send me an email.

 

Successful trading,

Steve

The Options Coach