Results Week Ending 11/4/22

As I mentioned in my post reporting my lone trade of the week, I will only be making Grasshopper trades and I will not be trading a lot. I do not have much money in my trading account, whether it evaporated or moved to more stable investments, it’s a Grasshopper account.

This week to get us started again I made 1 trade. As reported, with Tesla at about $227 at the open on Tuesday it quickly shot up to $235 in the first 10 minutes of the day. With the stock up $8 I felt it would not hold that level. I sold 1 contract of the TSLA 11/4/22 $140 Call for a premium of $4.

For new readers/Grasshoppers a 1 contract Call is dealing with 100 shares of stock. Receiving a $4 premium gave me a total premium of $400 on the 1 contract (100 shares). You get $4 for every share of stock.

As I predicted the stock did not hold its level, and didn’t hit my Strike Price of $240, so this option expired without me having to deliver the stock. I still own 100 shares of Tesla and I keep the $400 premium.

11/1/22 – Sell to Open 1 TSLA 11/4/22 $240 C @ $4.00 (+$400)

11/4/22 – Expired 1 TSLA 11/4/22 $240 C 

Profit +$400

The $400 is my total profit for the week.

Monday I’ll make a decision on selling another Call against these shares. Tuesday is Election Day. I might just hold the stock this week to see if the market goes up after the elections. If the market goes up I can get my gain that way. However, if the market goes up as a result of the elections I feel it will be a temporary pop.

It’s doubtful if investors will reverse this market on the elections alone. I feel they will want to see some policy changes, or at least some curtailing of present policies before they are ready to jump in again. The Fed made a commitment to raising rates in December, and beyond, so investors will have to see some change in inflation before this market makes a big move up.

Let me know your thoughts. Send me an email.

 

Successful trading,

Steve

The Options Coach