Results Week Ending 4/1/22
While enjoying another great week of weekly gains there was one major issue. That is an issue with the goals of MY strategy. The issue I talk about is with assignments. Most readers know that when I do Covered Calls I like to get assigned on Expiration Day. I say “my” strategy because not everyone likes to get assigned. I enjoy getting assigned! It gives me the fulfillment of making the money I signed up for and makes my money available for other trading opportunities that might better serve my goals. I feel if I’m not assigned I will be in a stock position that might be below my buy-in price. And as we all know this can lead to being stuck in a situation where our money is idle.
I start with this note because the last 2 weeks I was assigned on every Covered Call I entered. I like that feeling better!
Don’t get me wrong, I’m very happy with this week’s take, but as a result of this week will I have money in a situation where I cannot put it to work?
The last 2 weeks I was assigned on every position and this week I was assigned on none. This handcuffs me to work with the stock positions I own rather than have the freedom to enter any position that might be better this week.
Let’s take a look at this week’s positions.
I start with Nvidia. This was not a Covered Call, it was a Long option. Back on 1/10/22 I bought 7 contracts of the NVDA 6/17/22 $270 Calls. With the weak beginning of the new year I was a little worried about this position. Especially with the start of the war. Nvidia has been on the move lately and I was able to get out of this position with a nice profit and before Time Decay became a problem. This position was half of the week’s profit.
After Nvidia, the following positions were all Covered Calls without assignment.
Nvidia
1/10/22 – Buy to Open 7 NVDA 6/17/22 $270.00 C @ $28.50
3/29/22 – Sell to Close 7 NVDA 7/17/22 $270.00 C @ $35.75
Profit +$5075
Tesla
3/28/22 – Sell to Open 1 TSLA 4/1/22 $1125.00 C @ $20.00 (+$2000)
4/1/22 – Expired 1 TSLA 4/1/22 $1125.00 C
Profit +$2000
Tesla
3/28/22 – Sell to Open 1 TSLA 4/1/22 $1170.00 C @ $10.00 (+$1000)
4/1/22 – Expired 1 TSLA 4/1/22 $1170.00 C
Profit +$1000
Nvidia
3/29/22 – Sell to Open 2 NVDA 4/1/22 $290.00 C @ $4.00 (+$800)
4/1/22 – Expired 2 NVDA 4/1/22 $290.00 C
Profit +$800
Micron
3/30/22 – Sell to Open 5 MU 4/1/22 $85.00 C @ $2.00 (+$1000)
4/1/22 – Expired 5 MU 4/1/22 $85.00 C
Profit +$1000
Total Weekly Gain +$9875
I’m very happy with the last few weeks. I have a long way to go but my account is recovering nicely.
Sorry for the late report. College basketball is now over, I hope everyone enjoyed the final game. I have been a long time North Carolina fan, since the days of Dean Smith, but it was a great game. However, it had a chance to have a spectacular ending. If UNC hit their final 3 point shot at the buzzer it would have gone into overtime and a completely different ending.
Good luck this week!
Successful trading,
Steve
The Options Coach