Trades to Report with Tesla and Penn Gaming
Yesterday was a Travel day for me. I left NY to go to Ft Lauderdale. My wife and I were out of the house at 8:30am to head to the airport. At the airport, once the market was open, I placed a few trade orders before boarding the plan. I was filled on trades with Tesla (TSLA) and Penn Gaming (PENN) but was never filled on trades with AMAT and CREE. I’ll try again today. I should have reported the trades yesterday but once we landed we settled in to the hotel and went out for a late lunch on the beach.
I bought 200 shares of TSLA on 3/1 for $704 per share. I’ve been selling Calls every week bringing in premiums of 3 and 4 thousand dollars. And this is with the stock down a little from where I bought. This week the stock received another upgrade and it’s been moving up. Yesterday TSLA moved above my buy-in price in the morning. I decided to watch it before I got on the plane. When it was time to close the computer the stock was at $720. Who knew if it would go higher, or reverse and pull back. I decided to place an order to sell the $730 Call for a $15 premium. As soon as I got on the plane I opened my computer to see how my order was doing, I was filled.
I sold 2 TSLA 4/16/21 $730 Calls for a premium of $15 for $3000.
4/13/12 – Sell to Open 2 TSLA 4/16/21 $730.00 C @ $15.00 (+$3000
Now I wish I wasn’t traveling. Because I was traveling I wanted to get a trade in, but if I wasn’t traveling I might have watched it a little longer. The stock closed yesterday at $762 and as I write it’s due to open up another $15. I’m sure to get assigned on this one for a nice profit.
This trade gets a Risk Factor 1.
My other trade was with PENN. On 3/26 I bought 1000 shares of PENN at $111 as a result of being assigned on a Put. I’ve been selling Calls against the shares but the stock is down about $10. Yesterday I wanted another premium but they were a little low. With the stock at $101I decided to sell a $109 Call to get an OK premium. The problem is, if I get assigned I’ll lose $2 on the stock. However, I don’t think I’ll get assigned.
I sold 10 PENN 4/16/21 $109 Calls for a premium of 50¢ for $500.
4/13/21 – Sell to Open 10 PENN 4/16/21 $109.00 C @ 50¢ (+$500)
With the chance of losing money on assignment I give this trade a Risk Factor 2. If I was going to get assigned I do have the money in my margin to buy new shares to deliver at $109. If this happens I’ll keep my $111 shares to continue selling Calls against.
Any questions on this send me an email.
Successful trading,
Steve
The Options Coach