Trades to report & Catching up with Weekly Results
I missed the last 2 weekly results, plus I made a few trades yesterday. I’m sorry I didn’t get to post this information in a timely manner but as usual I’ve been very busy.
For the last few months I’ve been doing a lot of research in preparation for writing a book. The book has nothing to do with the stock market but the research is more. Let’s see if I can get it done.
In addition to this overwhelming project it’s spring time. Spring always comes with a lot of work around the house.
I missed the last 2 weekly results so let me report those before I get into a few trades I made yesterday. First I list Results Week Ending 4/8/22.
All of the trades this week involved Tesla. I have been making trades with Tesla and Nvidia but Nvidia dropped a little and I’m waiting for it to recover. I didn’t make a trade with Nvidia this week.
3/31/22 – Sell to Open 1 TSLA 4/8/22 $1150 C @ $2.20 (+$2200)
4/6/22 – Buy to Close 1 TSLA 4/8/22 $1150 C @ 90¢ (-$90)
Profit +$2110
4/4/22 – Sell to Open 1 TSLA 4/8/22 $1125.00 C @ $20.00 (+$2000)
4/8/22 – Expired 1 TSLA 4/8/22 $1125.00 C
Profit +$2000
At the end of the week Tesla dropped and I made a 1 day Naked Call trade.
4/7/22 – Sell to Open 1 TSLA 4/8/22 $1120.00 C @ $3.00 (+$300)
4/8/22 – Expired 1 TSLA 4/8/22 $1120.00 C
Profit +$300
All of the trades above expired and with the Tesla drop I didn’t get assigned on any of them.
Total Weekly Gain +$4410
For Results Week Ending 4/15/22 I only made 1 trade. This lone trade involved my split Strategy. RH announced a 3:1 stock split but didn’t announce the splitting date. They reported it will happen during the 2nd quarter which we just entered. On the announcement I bought 1 contract of the RH 5/20/22 $330 Call. The stock didn’t do much for the 1st week then it moved. With my Expiration Date approaching fast I decided to take an $1100 profit.
When dealing with Long options you don’t want to mess around if expiration is coming. Time decay will erode the premium quickly. In this case the stock did go a little higher but I was happy with the $1100 profit. In a day or 2 the stock did end up dropping.
Split Strategy
4/1/22 – Buy to Open 1 RH 5/20/22 $330.00 C @ $19.00
4/11/22 – Sell to Close 1 RH 5/20/22 $330.00 C @ $30.00
Profit +$1100
This return is 57.9%. Nice for an 11 day trade!
Total Weekly Gain +$1100
Yesterday’s Trades
Yesterday I made 3 trades. 1 with Tesla, 1 with Nvidia and 1 with RH involving my split strategy.
With RH I bought another Call because of their 3:1 split announcement. Last week I exited a position locking in the $1100 profit. When I got out the stock dropped back down to the $330 area. With the stock at $330.50 I bought 1 contract of the RH 6/17/22 $330 Call. I paid a premium of $32 for a total of $3200. The stock didn’t do much yesterday but today, as I write, it’s up over $16. The stock is at $344.
I could get out right now for a nice 1 day profit but I went out a little on the Expiration Date to 6/17 so I can watch it for a few more days. I hope I’m not being greedy!
4/18/22 – Buy to Open 1 RH 6/17/22 $330.00 C @ $32.00
If I get out of this trade I’ll continue getting back in until the split. After the split I’ll buy a few Calls to hold longer term. Whenever I make a trade involving a splitting stock I will be better with the posting.
Also splitting are Google and Amazon. The stocks are a bit high so I might wait until the day of the trade. I’ll keep you informed. I’m very interested in Amazon.
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Yesterday I made 2 trades with Tesla. I sold a 1 contract Call then the stock dropped and I bought my way out for a profit of $800 in a few hours. Then I get back in.
I sold 1 contract of the TSLA 4/22/22 $1010 C for a $30 premium for a total of $3000. The stock dropped and the premium went down to $22 so I did a Buy to Close for an $800 profit.
4/18/22 – Sell to Open 1 TSLA 4/22/22 $1010.00 C @ $30.00 (+$3000)
4/18/22 – Buy to Close 1 TSLA 4/22/22 $1010.00 C @ $22.00 (-$2200)
Profit +$800
After I did the Buy to Close to get out of the position the stock popped again. When the stock was up I sold another Call. I sold 1 TSLA 4/22/22 $1010 Call for a premium of $31. I’m still in this Call and the stock is up today.
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With Nvidia I sold a 3 contract Call. I sold 3 NVDA 4/22/22 $220 Calls for a $4 premium for a total of $1200.
4/18/22 – Sell to Open 3 NVDA 4/22/22 $220.00 C @ $4.00 (+$1200)
I’m watching RH closely. If I can grab a profit of $1000 I’ll probably get out. I’ll keep you informed.
Successful trading,
Steve
The Options Coach