Results Week Ending 3/25/22
I’m a little late with this report. The weekend was very busy with the NCAA tournament. It’s the best sporting event there is! It kept me away from my computer all weekend. Yesterday I went back to work in the market and I didn’t get to write.
The last 2 weeks are feeling like the old days. Both weeks I was assigned on all my positions. For our new readers I love to get assigned on my Covered Calls. I buy the stock and sell a Call signing up for what I’d be happy with. I make money on the stock sale and take in the premium I signed up for. Yes, sometimes the stock takes off and I have an Opportunity Lost, but I don’t worry about that. I feel If I make money I’m happy. Especially in today’s market. I move on!
As last week I was assigned on all my Covered Calls. And I had a great week. It feels good to be back in the game. Take a look at the positions below.
Tesla
Assigned Covered Call
Take a look at this trade. I bought 200 shares of TSLA at $815. The stock shot up and the next day I sold 2 Calls for a $2000 premium. I was assigned at my Strike Price of $870 and made $11,000 on the stock sale. Yes the stock went up higher but I received a $2000 premium to help with the Opportunity Lost. Remember I went a long way Out-of-the-Money with the $870 Call. If you’re not happy with this trade because of the Opportunity Lost then you just have to be a buy and hold investor. I like to be an options trader. And yes this is an expensive trade!
3/21/22 – Buy 200 Shares TSLA @ $815.00
3/25/22 – Assigned 200 Shares TSLA @ $870
Profit +$11,000
3/22/22 – Sell to Open 2 TSLA 3/25/22 $870.00 C @ $10.00 (+$2000)
3/25/22 – Expired 2 TSLA 3/25/22 $870.00 C
Profit +$2000
Nvidia
Assigned Covered Call
This was a similar trade. I bought the shares and sold the Calls the next day. I was assigned for a $2000 profit on the stock and took in a $1000 premium. With the stock sale and the premium this was a 5.6% return and the Tesla trade was a return of 6.7%.
3/21/22 – Buy 200 Shares NVDA @ $265.00
3/25/22 – Assigned 200 Shares NVDA @ $275.00
Profit +$2000
3/22/22 – Sell to Open 2 NVDA 3/25/22 $275.00 C @ $5.00 (+$1000)
3/25/22 – Expired 2 NVDA 3/25/22 $275.00 C
Profit +$1000
Tesla
Assigned Covered Call
This trade started as a Naked Call, which is a favorite strategy of mine. I love making money with making an investment. I sold a 1 contract Naked Call with the Strike Price of $995 for a premium of $500.. I believe the stock was in the $940 area when I sold the Call. After the big pop I felt the stock was gonna take a break but it continued moving up. I covered the Call at $990 and I was assigned. I made $500 on the stock and the $500 premium.
3/23/22 – Buy 100 Shares TSLA @ $990.00
3/25/22 – Assigned 100 Shares TSLA @ $995.00
Profit +$500
3/22/22 – Sell to Open 1 TSLA 3/25/22 $995.00 C @ $5.00 (+$500)
3/25/22 – Expired 1 TSLA 3/25/22 $995.00 C
Profit +$500
Total Weekly Gain +$17,000
This weekly gain is reminiscent of the Trump days. Let’s hope the market wants to keep moving but be very careful. There’s a lot going on in the world and the country. Remember, news moves the market!
If you have any questions on my Covered Call strategy send me an email.
Successful trading,
Steve
The Options Coach