Results Week Ending 4/24/20
I feel like my trading is getting back to normal, I wish I could say the same about the market. I did make more trades than normal, compared to before coronavirus, but they’re all the type of trades you will recognize. The market on the other hand, is still having 300 to 500 point days. To tell you the truth, the volatility is great for swing traders. If you look at my trades below you will see many with “Buy to Close” orders. This is to get out of a trade early because I was happy with the profit, exiting before expiration. If I get in a trade on Monday, and make a nice profit by Monday afternoon or Tuesday, I might jump out with the hopes to get back in before weeks end with the help of the volatility. It doesn’t always work, but there’s nothing wrong with locking in profit. Many times you will not make the most amount of money, or the amount a trade is designed for. As option traders, you will learn, if you didn’t lose money it’s a good thing. And if you take profit you didn’t lose money.
Below you’ll see many 10 contract trades involving United Airlines (UAL). All were involved with only buying 1000 shares of the stock. Most were involved in my Triple Play Hedge.
UAL is lower than where I bought, but I brought in a large amount of gains with all the Calls. If I had only sold 1 Call and held until expiration, with the stock going down, this would be a losing situation. I was not assigned so I still own 1000 shares of UAL at $28.
United Airlines
4/17/20 – Sell to Open 10 UAL 4/24/20 $30.00 C @ $2.05 (+$2050)
4/20/20 – Buy to Close 10 UAL 4/24/20 $30.00 C @ 80¢ (-$800)
Profit +$1250
4/20/20 – Sell to Open 10 UAL 4/24/20 $28.00 C @ $1.70 (+$1700)
4/22/20 – Buy to Close 10 UAL 4/24/20 $28.00 C @ 30¢ (-$300)
Profit +$1400
4/20/20 – Sell to Open 10 UAL 4/24/20 $25.00 P @ 60¢ (+$600)
4/23/20 – Buy to Close 10 UAL 4/24/20 $25.00 P @ 25¢
Profit +$350
4/21/20 – Sell to Open 10 UAL 4/24/20 $31.00C @ 60¢ (+$600)
4/22/20 – Buy to Close 10 UAL 4/24/20 $31.00 C @ 10¢ (-$100)
Profit +$500
4/20/20 – Sell to Open 10 UAL 4/24/20 $32.00 C @ 45¢ (+$450)
4/22/20 – Buy to Close 10 UAL 4/24/20 $32.00 C @ 5¢ (-$50)
Profit $400
I made a few trades with TWTR this week. This is one I did a “Buy to Close” with. I kept $650 of the $900 I signed up for.
4/17/20 – Sell to Open 10 TWTR 4/24/20 $27.00 C @ 90¢ (+$900)
4/21/20 – Buy to Close 10 TWTR 4/24/20 $27.00 C @ 25¢ (-$250)
Profit $650
I sold an At-the-Money Covered Call Call with RH and was assigned. Made no profit on the stock sale but brought in a $1000 premium.
RH – Covered Call
4/14/20 – Buy 500 Shares RH @ $131.00
4/24/20 – Assigned 500 Shares RH @ $131.00
Profit $0
4/22/20 – Sell to Open 5 RH 4/24/20 $131.00 C @ $2.00 (+$1000)
4/24/20 – Expired 5 RH 4/24/20 $131.00 C
Profit +$1000
This was a Covered Call with Twitter. I was assigned and made $600 on the stock and a $500 premium.
Twitter – Covered Call
4/20/20 – Buy 1000 Shares TWTR @ $26.40
4/24/20 – Assigned 1000 Shares TWTR @ $27.00
Profit +$600
4/22/20 – Sell to Open 10 TWTR 4/24/20 $27.00 C @ 50¢ (+$500)
4/24/20 – Expired 10 TWTR 4/24/20 $27.00 C
Profit +$500
I love NVDA. Late in the week, Thursday, with the stock at $285, I sold a $280 Put. It was only a 1 contract Put. I liked the way the stock was moving and I thought it was safe to get in this position for $200. The worse thing would have been me buying 100 shares of NVDA at $280. That wouldn’t have been too bad!
Nvidia
4/23/20 – Sell to Open 1 NVDA 4/24/20 $280.00 P @ $2.00 (+$200)
4/24/20 – Expired 1 NVDA 4/24/20 $280.00 P
Profit +$200
Total Weekly Gain +$6850
Well, there we have it. The first Weekly Results in a long time. And it is a good one! It feels good to be back on track. Let’s hope it can continue. My account is very close to where I opened 2020. Considering the coronavirus and what we’ve been through, I’m happy with that. NYC is still reeling with many people still getting sick, but it’s starting to look better. Please keep our contributing writer, Stephen Jr, in your thoughts, along with all first responders. He is healthy and doing well, but he is in the firehouse a few times a week. They are still getting many coronavirus calls.
Successful Trading,
Steve
The Options Coach