Closed Positions with XPEV and NKLA
I made these trades earlier but didn’t get time to report. I spent most of my day stretching the wrinkles out of my brain trying to come up with a way out of a substantial problem.
Last night I heard from my account about my 2020 tax returns. With the extension taxes are due in the beginning of the 3rd week in May.
For you active traders/investors you are well aware that 2021 is much different than 2020. I know we keep hearing the new records the indexes are hitting, but most stocks are much lower than a month or 2 ago, and some are lower than their year opening prices. All of my positions are lower.
Most readers know I had a huge year in 2020. My problem is I now have a huge tax bill. I am never completely invested, and always have money on the sidelines, However, with my stock down I’m not 100% prepared to withdraw between 100 and 150 thousand dollars. I never said this game is tax free lol.
I have another week to get my tax money together and hopefully I don’t have to hurt my trading account too much.
I’ll be making adjustments to some positions and I will get it done. Today I closed some small positions. every little bit will help lol. At the end of March I sold Calls on XPEV and NKLA to expire on May 21st. These positions are down so I was able to Buy to Close the positions with almost all the premium locked into my account. Below are the positions I closed.
Xpang
With this Call I signed up for $1000 and getting out early I was able to lock in $960.
3/31/21 – Sell to Open 10 XPEV 5/21/21 $50.00 C @ $1.00 (+$1000)
5/5/21 – Buy to Close 10 XPEV 5/21 21 $50.00 C @ 4¢ (-$40)
Profit +$960
Nikola
With this position I signed up for $700 and today I closed, locking in $630.
3/31/21 – Sell to Open 10 NKLA 5/21/21 $20.00 C @ 70¢ (+$700)
5/5/21 – Buy to Close 10 NKLA 5/21 21 $20.00 C @ 7¢ (-$70)
Profit +$630
Nikola
This was a Grasshopper Trade. I got into it with the trade above. I really didn’t have to close this but I did along with the 10 contract trade. I just closed the entire 11 contract position. This only cost me 7 bucks.
3/31/21 – Sell to Open 1 NKLA 5/21/21 $20.00 C @ 70¢ (+$70)
5/5/21 – Buy to Close 1 NKLA 5/21/21 $20.00 C @ 7¢ (-$7)
Profit +$63
I also sold a Call on PTON. This stock is taking a huge beating and so am I. They report earnings tomorrow but they took a big hit today because they had to recall a load of their treadmills. Stock was down $14. With the stock at $82.50 I sold 20 $98 Calls. I went out with the Strike Price because I don’t want to get assigned. It’s possible the stock can pop with good earnings.
Sell to Open 20 PTON 5/7/21 $98.50 C @ 70¢ (+$1400)
Successful trading,
Steve
The Options Coach