Out of Microchip Calls and More
I’m having quite the busy day. I wanted to report a few trades while I had a few free minutes.
Most readers know that the stock Microchip (MCHP) is doing a 2:1 split on Oct 12th. I’ve been in and out of a few positions, taking advantage of the stock moving up while I wait for the split. On 9/17 I bought 5 contracts of the MCHP 1/21/22 $160 Calls for $12.50. Today, 6 days later I sold these Calls. Why? I love to lock in profit! I sold the 5 contracts for $13.80. My profit was $1.30. On the 5 contracts the profit is $650. That’s a 10.4% return in 6 days.
9/17/21 – Buy to Open 5 MCHP 1/21/22 $160.00 C @ $12.50
9/23/21 – Sell to Close 5 MCHP 1/21/22 $160.00 C @ $13.80
Profit +$650
I will continue to get into MCHP Calls and hopefully continue to make money. The stock is at $164. I’d like it to dit back to $160 before I get back in. I don’t know if that will happen, if not I’ll watch and get back in where I feel I can make money. I will also buy Calls a day or 2 before the split and hold a little past the split.
I wrote a few days ago that MCHP was at a good price to get in. If anyone got in they made some nice money.
Today I also got out of my Marvell Calls. I made money but not as much as I thought I would. Way back on 1/27/21 I bought 5 contracts of the MRVL 1/21/22 $55 Calls for a premium of $9.45. The stock moved up but the premium didn’t go up like I hoped. Time Decay is starting to work against me. This Call expires in January so I felt it was time to get out. I don’t like Long options getting too close to expiration. I sold my contracts at $10.50 for a profit of $1.05. On the 5 contracts I made $525. That’s a return of 11%. Not bad but I held this position for 8 months. Selling this position is part of me liquidating to work on my Day Trading.
1/27/21 – Buy to Open 5 MRVL 1/21/22 $55.00 C @ $9.45
9/23/21 – Sell to Close 5 MRVL 1/21/22 $55.00 C @ $10.50
Profit +$525
I also made 1 Day Trade. Blackberry (BB) reported earnings yesterday and gapped up in the pre-market at 7am this morning. At the open I was ready to get involved. When the market opened the stock dropped, but then it started to go up. Once it went above the pre-market highs and broke above the Volume Weighted Average Price (VWAP) I felt it would go higher. From the open this move is a drop & pop. I got in with 1000 shares at $10.52 and the stock went up above $10.80. When it was at $10.80 I put on a Stop Loss at $10.72. If I got stopped out at $10.72 it would be a 20 cents profit for $200. The stock dropped back and I was stopped out.
9/23/21 – Buy 1000 Shares BB @ $10.52
9/23/21 – Sell 1000 Shares BB @ $10.72
Profit +$200
I know it’s not a lot of money but I’m just practicing my strategy. I’ll be watching BB to see if I think it will drop back because of the early morning gap up.
Successful trading,
Steve
The Options Coach