Results Week Ending 10/22/21
I really got caught up in a wild week and I’m a little disappointed in myself. We all like making money but if we don’t stick to our plan of discipline and “Slow and Steady, Steady and Slow” we will pay, big time!
Before I get into my opening statement let me talk about the many losing positions I’m holding. During this year of the market moving up and most stocks moving down, I stuck in a few losing positions. Many I moved into another account because I’m sick of looking at them everyday in my trading account. Slowly but surely I want to get out of these losers and get more liquid. Some, as you know I already got out of, but not big losers. I will be out of them all by the end of the year. Either they come back or I get a tax write-off. Not only am I holding losing stocks, I’m also holding a few losing LEAPS, which are listed at the bottom of my Active Trades page.
This week I dumped a large position for a big loss.
I’ve been in NIO for most of the year. I originally got in in January in the $65 area. As the stock moved down I bought more to lower my average price. Long story, short. This week I owned 1500 shares at $52. I decided to get out to liquidate to have money available for my normal trading and my Day Trading. I sold the 1500 shares at $39.50 giving me an $18,750 loss. I’m not happy about this but sometimes you just have to move on and use the money elsewhere. I predict I’ll have a big tax write-off the last week of the year because I have other losing positions to dump. You will see the NIO loss below.
Also this week I jumped out of NVDA and MCHP Long option positions. Both of these were part of my split strategy. If will see below.
Let me get back to my opening statement, my wild week! What made this a wild week was my Day Trading, mainly with DWAC. If you read my post on Thursday, you saw my huge day. If you haven’t read it you can read it here. It was the first day of Trump’s SPAC to raise money for his social media platform, “Truth.” The SPAC went crazy! I broke a few of my rules but I played everything right for a huge day. The next day, Friday, the craziness continued. On Friday I was up $2500 before the market opened with pre-market trades I made. After the opening I continued making money and by 10:30am I was up $30K. I should have closed my computer and called it a day, but I didn’t. The SPAC started pulling back. Sometimes so fast I couldn’t even get my Stops set. The stock kept moving up and down in a downward direction. The end result was I pretty much ended the day even with Trump’s SPAC. However. my account was down a little because of other positions I own.
After the day I had a sick feeling because of the $30K I was up and let it melt away. I felt like I was in a casino playing Craps, Roulette and Blackjack all at once. I’m talking “heart attack!” I got caught up in this and I will try my hardest to never let it happen again. I made so many trades I couldn’t even keep track. Not even with a pen and paper. If I show you the list of trades you would not believe it. No way for a person who preaches discipline to act. It’s over, I had a nice week, and I’ll chalk it up as a learning experience.
Let’s take a look at this week’s trades. I did not list all the trades from Thursday because of the amount. I didn’t list Friday’s trades because of the same reason only there was a lot more, and I pretty much broke even.
I had 4 more contracts of NVDA 1/20/23 options I bought before the split. I bought 1 contract, it turned into 4, and this week I sold 2 of them. I hope this makes sense. I still hold 2 more contracts. The last 2 from the split. I did very well with the NVDA split.
Post 4:1 Split “Sell to Close”
Sold 2 of 4 contracts
7/7/21 – Buy to Open 1 NVDA 1/20/23 $820.00 C @ $164.00 ($41.00 post split)
10/18/21 – Sell to Close 2 NVDA 1/20/23 $205.00 C @ $46.00
Profit +$1000
Here I bought 5 contracts of the MCHP 6/17/22 Calls. After the split 2:1 split I had 10 contracts. I sold them this week for a nice profit.
Post 2:1 Split “Sell to Close”
10/12/21 – Buy to Open 5 MCHP 6/17/22 $145.00 C @ $14.40 ($7.20 post split)
10/21/21 – Sell to Close 10 MCHP 6/17/22 C @ $9.20
Profit +$2000
Crazy day!!!
10/21/21 – Day Trading
Too Many to List – See Trades
Profit $33,950
This is the losing trading with NIO.
6/14/21 – Buy 1500 Shares NIO @ $52.00
10/21/21 – Sell 1500 Shares NIO @ $39.50
Loss -$18,750
Assigned Covered Call
2/2/21 – Buy 100 Shares TSLA @ $857.00
10/22/21 – Assigned 100 Shares TSLA @ $880
Profit +$2300
10/15/21 – Sell to Open 1 TSLA 10/22/21 $880.00 C @ $5.80 (+$580)
10/22/21 – Expired 1 TSLA 10/22/21 $880.00 C
Profit +580
Assigned Covered Call
10/18/21 – Buy 100 Shares TSLA @ $859.50
10/22/21 – Assigned 100 Shares TSLA @ $865
Profit +$ 550
10/18/21 – Sell to Open 1 TSLA 10/22/21 $865.00 C @ $20.00 (+$2000)
10/22/21 – Expired 1 TSLA 10/22/21 $865.00 C
Profit +$2000
Assigned Covered Call
10/14/21 – Buy 1000 Shares PTON @ $86.00
10/22/21 – Assigned 1000 Shares PTON @ 87.00
Profit +$1000
10/18/21 – Sell to Open 10 PTON 10/22/21 $87.00 C @ $1.25 (+$1250)
10/22/21 – Expired 10 PTON 10/22/21 $87.00 C
Profit +$1250
Total Weekly Gain +$25,880
The last 3 trades listed were 3 assigned Covered Calls. The only trades to expire normally this week. I’m always happy getting assigned on my Covered Calls.
I hope to get back to my more disciplined way of trading on Monday.
Clearly I didn’t have time to make Grasshopper Trades but you can always look at my larger trades and see how they would work with a 1 contract position. The key is not to mimic my trades but to learn how to trade on your own.
Have a great weekend. I’m enjoying mine in Boston. About to go watch some football.
Successful trading,
Steve
The Options Coach