Results Week Ending 4/23/21

What a Day Friday was! The markets shrug off the tax threats that caused a lot of fear and aimed for new highs. Stocks recovered from Thursday’s selloff as indexes posted strong gains. The Dow was up 227, NASDAQ +198 and the S&P 500 +45. It was a well received ending to a volatile week. Possibly the tax talk was outshined by the home sales data that blew away expectation; or that homebuilders are now outpacing the NASDAQ. Many articles I’m reading are saying the new home data may be a leading indicator of stronger economic growth to come throughout the year. This week I might look into some of the homebuilders and stocks like Home Depot (HD) and Lowes (LOW).

I really don’t have much available to venture into a new sector since I was only assigned on 1000 shares of AMD and 100 shares of X. With many of my positions down I’m trying to get the premiums I need from these stocks. Making money with all your positions down is difficult but gets better with experience. The indexes are up but many stocks are still down. It just so happens that my holdings fall into this category. However, I’m happy with my stock selection and have full confidence they will return to my buy-in price this year. While I wait for this to happen I use every tool available to keep bringing in premiums.

Below are the trades that, again, gave me my weekly goal.

 

Apple

I bought a 1 contract Apple LEAPS when the stock was splitting. This 1 contract turned into 4 contracts on the 4:1 split. With a lot of uncertainty in the market I decided to cash in and put the 5 grand in my mattress.

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

Applied Materials

I bought 1000 shares of AMAT on 4/5. I sold a Call and brought in a nice premium. I was not assigned and the stock sold off. For my next Call I sold a 2 week Call to get a better premium. I sold this one on 4/14 for a $1000 premium. The stock is still about $8 below where I bought so I might have to sell another 2 week Call on Monday. Picking the correct Expiration Date and Strike Price is all part of the game. Trading options is never a smooth highway! This is why it’s so important to pick good stocks.

4/14/21 – Sell to Open 10 AMAT 4/23/21 $143.00 C @ $1.00 (+$1000)

4/23/21 – Expired 10 AMAT 4/23/21 $143.00 C

Profit +$1000

Cree

Cree is another stock much lower than my buy-in price. This is another one where I sold a 2 week Call. I’m in Cree at $121.50 but Friday it started to move. It closed at $114.77.

4/14/21 – Sell to Open 10 CREE 4/23/21 $121.00 C @ $1.30 (+$1300)

4/23/21 – Expired 10 CREE 4/23/21 $121.00 C

Profit +1300

Roblox

Last week I bought 500 shares and was assigned on my Covered Call. This week I bought another 500 shares and the stock tanked. Go figure! I’m in the stock at $77.50. It’s fighting back but it’s still only at $71.78. This might have to be another 2 week Call.

4/19/21 – Sell to Open 5 RBLX 4/23/21 $78.00 C @ $2.50 (+$1250)

4/23/21 – Expired 5 RBLX 4/23/21 $78.00 C

Profit +$1250

Advanced Micro Devices

I bought 1000 shares of AMD on Wednesday at $82.50. As soon as I bought the stock tanked down to $78. It bounced back and I got a Call sold on Thursday. Since there was only 1 day remaining to the week, and the stock was still down, I sold an At-the-Money Call for a small premium of 25¢. The stock moved on Friday and I was assigned. Wasn’t a big money play but I made money. Since it was an At-the-Money Call I made nothing on the assignment. I did keep the $250 premium. Hey, it’s better than losing money!

Assigned ATM Covered Call

4/21/21 – Buy 1000 Shares AMD @ $82.50

4/23/21 – Assigned 1000 Shares AMD @ $82.50

Profit +0

4/22/21 – Sell to Open 10 AMD 4/23/21 $82.50 C @ 25¢ (+$250)

4/23/21 – Expired 10 AMD 4/23/21 $82.50 C

Profit +$250

Peloton

As you know I’m way down with Peloton. But I made a lot of money with the stock and I keep bringing in premiums. I sold this $110 Call for a 1 day trade and took in $500.

4/22/21 – Sell to Open 20 PTON 4/23/21 $110.00 C @ 25¢ (+$500)

4/23/21 – Expired 20 PTON 4/23/21 $110.00 C

Profit +$500

Palentir

I’m down about 50% with PLTR and the premiums haven’t been great so I’ve been Idle on this stock. This week I made a 1 day trade similar to PTON, and brought in $500. I didn’t want to get assigned. I used the $23.50 Strike Price and the stock closed at $23.41. Luck was on my side!

4/22/21 – Sell to Open 20 PLTR 4/23/21 $23.50 C @ 25¢ (+$500)

4/23/21 – Expired 20 PLTR 4/23/21 $23.50 C

 Profit +$500

Penn Gaming

This was the same situation as PTON and PLTR. I sold a 1 day Call and didn’t want to get assigned. I wasn’t! I’m in this stock at $111. If I was assigned I would have had a big loss on the stock.

4/22/21 – Sell to Open 10 PENN 4/23/21 $98.00 C @ 25¢ (+$250)

4/23/21 – Expired 10 PENN 4/23/21 $98.00 C

Profit +$250

U.S. Steel

This was a Grasshopper Trade. I was not assigned.

4/14/21 – Sell 1 X 4/23/21 $24.50 C @ 50¢ (+$50)

4/23/21 – Expired 1 X 4/23/21 $24.50 C

Profit +$50

U.S. Steel

Another Grasshopper Trade with X. On this one I was assigned. Total return on this Covered Call was 4.2%.

4/14/21 – Buy 100 Shares X @ $23.30

4/23/21 – Assigned 100 Shares X @ $23.50

Profit +$20

4/19/21 – Sell to Open 1 X 4/23/21 $23.50 C @ 80¢ (+$80)

4/23/21 – Expired 1 X 4/23/21 $23.50 C

Profit +$80

Total Weekly Gain +$10,225

If many of my stocks are down I’m sure some of yours are also. You must pick good stock that you have full confidence they will return if there is a pullback. This will save you a lot of heartache. Never be fully invested and not invest what you can afford to lose. As a Grasshopper you must concentrate on the return and not the amount of money. Pigs get slaughtered!

Have a great weekend!

 

Successful trading,

Steve

The Options Coach