Results Week Ending 4/30/21
We have completed 4 months of 2021. I hope the next 4 months are better than the last 4. It’s strange saying this with the 3 indexes near their all time highs, but this choppy market has many stocks well below their highs and I’m holding a bunch of them.
“Sell in May and go away.” Today is May 1st. I hope this old time saying, which stems from an old time philosophy of selling in May and getting back to the market in September, does not come into play this year. Only time will tell, but May is upon us.
Many people I talk to are in the same boat as me, holding stock below their buy-in price. I work with the strategy of wanting to get assigned, and assignments have been few. When I don’t get assigned on my Covered Calls positions start to stack up in my account. Exactly what I don’t want to happen. It’s not bad if the stocks stay within a few cents of my buy-in price, but if they fall a few dollars below bringing in the premiums I desire is difficult.
So far, it hasn’t been much of a problem. I’ve still been able to bring in my weekly goal of 10K. This week I fell a few dollars short but for the most part I’m happy with my incoming money. Having said that, if the market sells in May and goes away until September, this can turn out to be a disappointing year.
This week I had a nice balance of my bigger trades and some learning, Grasshopper Trades. I made Grasshopper Trades with U.S. Steel (X), Macy’s (M) and Cleveland-Cliffs (CLF). I was not assigned on any of them but they are very close to my buy-in price so I should be able to get more Calls sold this week. We need a good Monday!
Below are all my trades.
Tesla
Yesterday at the close I placed a trade to Buy to Close the Call connected to a Tesla Covered Call. I was able to get out keeping most of the premium money with 50 days still left to the contract. Tesla came out with great earnings and was on the move on Friday, up 32. I made this move to lock in money and to hopefully see the stock continue up so I can get another Call sold without waiting 50 days for my contract to expire. Time will tell if this was a good move or not. Either way I locked in $3110.
3/22/21 – Sell to Open 1 TSLA 6/18/21 $860.00 C @ $42.00 (+$4200)
4/30/21 – Buy to Close 1 TSLA 6/18/21 $860.00C @ $10.90 (-$1090)
Profit +$3110
Cree
I’m in Cree at $121.50. This week I sold a $120 Call with the hopes of getting assigned. I would have taken a little loss on the stock but I brought in plenty of premiums while holding the stock.
The stock was above $119 in the middle of the week and assignment looked good. Then, along came earnings and the stock dropped $20 in 2 days. I hope for a little bounce this week.
4/23/21 – Sell to Open 10 CREE 4/30/21 $120.00 C @ 2.50 (+$2500)
4/30/21 – Expired 10 CREE 4/30/21 $120.00 C
Profit +$2500
Cleveland-Cliffs
Besides my Grasshopper Trade I also made a trade with CLF in my trading account. No assignment! But I did get a 2.2% return. Hopefully I get the same this week.
4/26/21 – Sell to Open 10 CLF 4/30/21 $18.50 C @ 40¢ (+$400)
4/30/21 – Expired 10 CLF 4/30/21 $18.50 C
Profit +$400
Roblox
This is my 3rd week involved in RBLX. 1st week I was assigned but wasn’t the mast 2. It’s staying in a nice trading range so I’m happy with this stock. However, I like assignments.
4/26/21 – Sell to Open 5 RBLX 4/30/21 $77.50 C @ $1.00 (+$500)
4/30/21 – Expired 5 RBLX 4/30/21 $77.50 C
Profit +$500
Square
Square has been in a nice trading range but dropped back a few bucks. It closed at $245. I’m not happy with it here. I only have 300 shares but I need it to move this week.
4/26/21 – Sell to Open 3 SQ 4/30/21 $267.50 C @ $2.00 (+$600)
4/30/21 – Expired 3 SQ 4/30/21 $267.50 C
Profit +$600
Peloton
I made a ton with PTON but it has been a thorn in my side. If it doesn’t drop any more, and I can continue being successful selling Calls with a Strike well below my buy-in price without assignment I’m happy. But there is a little stress involved.
4/28/21 – Sell to Open 20 PTON 4/30/21 $108.00 @ 45¢ (+$900)
4/30/21 – Expired 20 PTON 4/30/21 $108.00 C
Profit +$900
U.S. Steel
1 contract Grasshopper Trade. This was a 2.8% return without assignment.
4/23/21 – Sell to Open 1 X 4/30/21 $24.50 C @ 70¢ (+$70)
4/30/21 – Expired 1 X 4/30/21 $24.50 C
Profit +$70
Macy’s
This is a 5.2% return. M closed at $16.58. If I can get another great return this week I’ll be happy.
4/26/21 – Sell to Open 2 M 4/30/21 $17.00 C @ 45¢ (+$90)
4/30/21 – Expired 2 M 4/30/21 $17.00 C
Profit +$90
Cleveland-Cliffs
The CLF Grasshopper Trade without assignment.
4/26/21 – Sell to Open 1 CLF 4/30/21 $18.50 C @ 40¢ (+$40)
4/30/21 – Expired 1 CLF 4/30/21 $18.50 C
Profit $40
U.S. Steel
Another X Grasshopper Trade with a 4.1% return.
4/23/21 – Sell to Open 1 X 4/30/21 $23.50 C @ 95¢ (+$95)
4/30/21 – Expired 1 X 4/30/21 $23.50 C
Profit +$95
Total Weekly Gain +$8405
This week was a little short of my $10,000 goal. While my account fluctuates up and down with the choppy markets, I’ll just keep bringing in money until my positions recover. I hope!!!
Have a great weekend!
Successful trading,
Steve
The Options Coach