Results Week Ending 7/2/21
This week the market returned to it’s strange ways. If you can overlay your charts, with the 1 day candlestick charts put any stocks chart over the Dow Jones chart looking at this week. This week looks like the charts of March, April and May. The DOW moves in one direction and most stocks move in the other.
For example: Monday and Tuesday of this week the DOW was down. Take a look at many good stocks, they went up. The rest of the week the DOW went up and most of the good stocks went down. Take a look at ETSY, PTON, MU, AMZN, TSLA, MRVL, DKNG, TWTR, NTAP, AMAT, NIO, DDD, PLTR, XOM, ABNB, SQ, NFLX, CVS. My list could go on and on. All big names, good stock, many days moving opposite the indexes. It makes it very difficult to predict the movement of a stock.
Monday and Tuesday the market was down, my account went up 30K. The market was up Wednesday, Thursday and Friday, my account broke even on the week. And that’s with taking in over $14,000 in premiums. This week the market went back to the market of March, April and May….crazy! June the NASDAQ moved great, it was up, and my account was up well over 100K. It’s nice when the stocks move in the direction of the indexes they’re in.
This is an observation. I find it strange when the markets move up and my account moves down, or vice versa.
This week was an OK week for me. Like I said my account stayed even but I brought in $14,490 in premiums.
I have a few students that I’m in close contact with. They’re sticking to the plan and moving slow and steady. And they are making money. Not a huge amount but they are bringing in a great Rate of Return. They are buying 100 or 200 shares and selling Calls. They are not moving to 300 or 400 shares because they understand they are learning, and they’re learning correctly. While they are making Grasshopper Trades they see how crazy the market can be. It’s very important to stick to a plan and not get greedy. Once you see how the premiums react to market movements, learn how Time Decay works, understand Time Value, know how certain stocks move by watching them over time. Only then is it time to increase your position size. Believe it or not, this is a great time to learn. The NASDAQ is at an all time high but not many stocks are at a 52 week high.
The way I speak of the few students above, I wish I could say the same about all the students. Not only should the profits be slow and steady but the learning should be also. Please look at the Grasshopper Trade History 2021. These are the trades students should be making. Look at the results from the beginning of the year.
Let’s take a look at this week’s Grasshopper Trades of the week.
Skillz
A Covered Call without assignment. The premium was a return of 2%.
6/17/21 – Sell to Open 2 SKLZ 7/2/21 $23.00 C @ 45¢ (+$90)
7/2/21 – Expired 2 SKLZ 7/2/21 $23.00 C
Profit +$90
Contextlogic
A Covered Call without Assignment. This trade had a return of 9.1%. This is huge! Whenever you get a high premium you get higher volatility. The stock pulled back to below $12. This risk comes with the high premium. WISH is another stock that moved completely opposite the market.
6/23/21 – Sell to Open 2 WISH 7/2/21 $14.00 C @ $1.25 (+$250)
7/2/21 – Expired 2 WISH 7/2/21 $14.00 C
Profit +$250
Workhorse
A Covered Call without assignment. This trade gave me a return of 8%. This is a stock that I’ve been watching for a long time. I pretty much know how it moves and I know it’s potential for big swings. This is where the premium comes from.
6/28/21 – Sell to Open 2 WKHS 7/2/21 $16.50 C @ $1.25 (+$250)
7/2/21 – Expired 2 WKHS 7/2/21 $16.50 C
Profit +$250
Macys
Halfway through the week I was set for assignment. Thursday and Friday the market was up but M is another stock that moved opposite the market. With this trade I did an In-the-Money Covered Call but I still was not assigned. I bought the stock at $19.20 and sold the $19 Call. When not assigned on an In-the-Money Covered Call you keep a larger premium. This trade was a return of 3.1%.
6/28/21 – Sell to Open 2 M 7/2/21 $19.00 C @ 60¢ (+$120)
7/2/21 – Expired 2 M 7/2/21 $19.00 C
Profit +$120
3D Systems
After a big week last week, 3D moved completely opposite the market this week. No Assignment!
6/30/21 – Sell to Open 2 DDD 7/2/21 $38.00 C @ 90¢ (+$180)
7/2/21 – Expired 2 DDD 7/2/21 $38.00 C
Profit +$180
Total Weekly Gain +$890
Overall not a bad week. Made $890 with the Grasshopper Trades and a total of $14,490 including my Master Trades. I’m disappointed I wasn’t assigned on more but I was assigned on 4 Master Trades. You can see all my trades on my Active Trades page.
The DOW was up 131 on Thursday and 152 on Friday. The NASDAQ up 18 on Thursday and up 117 on Friday. The S&P was up 22 on Thursday and up 32 on Friday. And my account gave back about 30k from being up Monday and Tuesday. Absolutely crazy but it’s all part of the game.
Let’s hope the positions I’m holding go up and get assigned this week, which is only 4 days.
Let’s be thankful and proud this weekend of our great country. Enjoy the 4th of July. I’ll be at one of the nation’s oldest 4th of July parades. It’s been held on Staten Island, NY every year, continuously since 1911. One of my very good friends is the Grass Marshal.
Happy 4th of July!
Successful trading,
Steve
The Options Coach