Completely Out of MCHP Positions
Most readers know Microchip (MCHP) split on Oct 12th. Less than a month ago. I had one more position remaining after being in 5 positions with my split strategy. I entered 5 positions since the split announcement, 3 pre-split and 2 post-split.
My only remaining position I entered before the split and held until today, after the split. When I entered the stock was at $160 per share and I bought 5 contracts of the $160 Calls to expire on 1/21/22. After the split I owned 10 contracts of the $80 Calls. I was worried about this position because the stock dropped down to $70. Since my Expiration Date was in January I needed the stock to move with the stock $10 below my Strike. Last week the stock started to move and today with the stock at $82.50 I jumped out. Below is the buy-in order along with the sell order filled today.
As you can see the premium was $6.80, but this was for 10 contracts. This premium gave me a profit of $1050. I held the position a little longer than a month for a return of $18.2%.
Post 2:1 Split “Sell to Close”
9/28/21 – Buy to Open 5 MCHP 1/21/22 $160.00 C @ $11.50 ($5.75 post split)
11/4/21 – Sell to Close 10 MCHP 1/21/22 $80.00 C @ $6.80
Profit +$1050
The sale of this position brings a conclusion to my Microchip split strategy plays. Below is a list of all the positions I entered after the split announcement, including today’s position.
8/25/21 – Buy to Open 2 MCHP 1/21/21 $150.00 C @ $13.00
8/27/21 – Sell to Close 2 MCHP 1/21 21 $150.00 C @ $18.80
Profit +$1160
8/31/21 – Buy to Open 2 MCHP 1/21/22 $155.00 C @ $13.00
9/1/21 – Sell toClose 2 MCHP 1/21/22 $155.00 C @ $15.00
Profit +$400
9/17/21 – Buy to Open 5 MCHP 1/21/22 $160.00 C @ $12.50
9/23/21 – Sell to Open 5 MCHP 1/21/22 $160.00 C @ $13.80
Profit +$650
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 $72.50 C @ $9.20
Profit +$2000
Post 2:1 Split “Sell to Close”
9/28/21 – Buy to Open 5 MCHP 1/21/22 $160.00 C @ $11.50 ($5.75 post split)
11/4/21 – Sell to Close 10 MCHP 1/21/22 $80.00 C @ $6.80
Profit +$1050
As a result of the MCHP split I made a total of $5260 with my split Strategy. The first position I entered on the split announcement on 8/25. These are not my best results with a splitting stock but I’m very happy!
Successful trading,
Steve
The Options Coach