5 Trades to Report
On Friday I had to get away from my computer before the market closed. Before I did I placed an order to buy another 1 contract Call with RH. I placed the order with a lower price than what the option was selling for in the case the stock went down. As you probably know the market fell off the table the last half hour of the week. With the big drop my order was filled. RH will be doing a 3:1 split soon but a date has not been announced. This is my 4th trade with my split strategy. I bought 1 contract of the RH 6/17/22 $340 Call for a price of $33. I’m looking to make between $700 and $1000 and I hope to be out within the week.
4/29/22 – Buy to Open 1 RH 7/17/22 $340.00 C @ $33.00
With my 3 previous trades I made $1100, $1100 and $700. I hope this trade works out the same.
Today the market opened very shaky and volatile. When Tesla was up, at about 10:30am, I sold 1 contract of the 5/6/22 $920 Call for a premium of $20 for $2000. About a half later the stock dropped and I did a Buy to Close at $13 and closed the trade with a $700 profit.
5/2/22 – Sell to Open 1 TSLA 5/6/22 $920.00 C @ $20.00 (+$2000)
5/2/22 – Buy to Close 1 TSLA 5/6/22 $920.00 C @ $13.00 (-$1300)
Profit +$700
Making this move was a no-brainer since we were in the 1st hour of the week and I had plenty of time to re-enter a trade. Lucky for me, late in the day, the market moved. I sold the same Call for the same premium as the first for another $2000.
Sell to Open 1 TSLA 5/6/22 $920.00 C @ $20.00 (+$2000)
I might hold this until Friday, or I might do another Buy to Close if the opportunity presents itself and there’s enough time left in the week to sell yet another Call. Let’s watch and see. If not I’ll be very happy with the $2000.
I also sold a 3 contract Call with Nvidia. I might have sold a little early but I still got an $1800 premium.
Sell to Open 3 NVDA 5/6/22 $190.00 C @ $6.00 (+$1800)
For my last trade I sold a 4 contract Call with Marvell. I sold 4 5/6/22 $60 Calls for a premium of $1.85 for 740. The same premium I received last week.
Sell to Open 4 MRVL 5/6/22 $60.00 C @ $1.85 (+$740)
All of these trades are Covered Calls and they all get a Risk Factor 1.
Now if only the market can move up this week, it can be a good one for me.
Successful trading,
Steve
The Options Coach