Sold a Long Apple Position, Plus Sold Calls with CREE & U.S. Steel

The new readers will not be familiar with this Apple (AAPL) position, but the long time subscribers will be. Way back on 8/3/20 I bought a number of LEAPS Calls with AAPL when the stock was splitting. I sold most of the positions but I held on to one. I made some real nice profit with all the positions sold and I just made more selling the last position. I probably would have made the same amount of money if I sold this one with the rest of them but it had an Expiration Date of 6/17/22 so I held it to see where it might go. Since I sold the other position Apple really didn’t move much so I decided to sell the last one today. Like I said, on 8/3/20, with the stock at $443, I bought 1 AAPL 6/17/22 $440 Call for a premium of $77.75 for $7775. This is a long term option called a LEAPS. When the stock did a 4:1 split a few days later I ended up with 4 AAPL 6/17/22 $110 Calls. Today with the stock up with the rest of the market I sold 4 Apple LEAPS at $32. The 4 $32 Calls were worth $12,800. When you subtract the investment of $7775 my profit is $5025. I held the position for 8 months but my return is 64.6%.  

Post 4:1 Split (Sell to Close)

8/3/20 – Buy to Open 1 AAPL 6/17/22 $440.00 C @ $77.75 

4/23/21 – Sell to Close 4 AAPL 6/17/22 $110.00 C @ $32.00

Profit +$5025 

  I really don’t like the way the market has been moving. All indexes are at all time highs but many stocks are nowhere near that. I have no idea where Apple is going. Even though I still had a year before this LEAPS expired I decided to cash in and put the money back to work elsewhere. You never lose money taking profit. If you have any questions on how this LEAPS worked with a splitting stock send me an email.
With the market winding down on the week I decided to sell some Calls to get next week started. I have Calls sold on these stocks now but I don’t think I’ll get assigned so I sold more Calls for next week. With Cree I sold 10 CREE 4/30/21 $120.00 Calls for a premium of $2.50 for $2500. I’m in this stock at $121.50 and I really want to get out. If I get assigned I’ll lose $1.50 on the stock but I’ve been taking in a lot of premiums so I’ll be OK.  

Sell to Open 10 CREE 4/30/21 $120.00 C @ $2.50 (+$2500)

This get a Risk Factor 2 only because I’ll lose money on assignment. No problem! I still hope I get assigned.
I have 2 Grasshopper Trades going with U.S. Steel (X). Both are 1 contracts and both expire today at the close. 1 has a Strike Price of $23.50 and the other $24.50. I just sold 2 more Calls against these shares because I didn’t think I’d get assigned. However, as I write the stock went above the $23.50 Strike Price and is at $23.60. If I get assigned one of the Calls I just sold will be naked for next week. I’ll deal with it at the close. I might buy another 100 shares. If you are a Grasshopper and don’t understand what I’m doing send me an email, it’s important. I sold 1 X 4/30/21 $23.50 Call for a premium of 95¢ for $95. And I sold a 4/30/21 $24.50 Call for a premium of 70¢ for $70.  

Sell to Open 1 X 4/30/21 $23.50 C @ 95¢ (+$95)

 

Sell to Open 1 X 4/30/21 $24.50 C @ 70¢ (+$70)

  I’m typing very fast because I have so much to do, so if I’m not making sense please send me an email. The 2 U.S. Steel Calls will be listed in “The Grasshopper Field.”   Successful trading, Steve The Options Coach