Results Week Ending 6/5/20
This market just keeps chugging along. I don’t understand it, but it does. The stock prices are definitely not priced according to the fundamentals; I think it’s more that people are afraid to miss the boat. I think a lot of investors are looking at this market as a “get rick quick” scheme. This troubles me. Sooner or later the bottom is gonna fall out. I hope not! But the prices of some of these stock, I just don’t understand! I think we might be in for an awakening when the next earnings season rolls around. Like I said, I hope not! I hope the market continues up and everyone gets rich, but it just doesn’t make sense to me.
I’m gonna continue doing what I’m doing, selling Calls. You might even see me do a few Naked Calls on certain stocks soon. I don’t want to get caught holding a lot of Long Positions if we do get a correction.
I hope I’m a little inspiring and not sounding like a broken record, but I had another very nice week. I locked in another $6000. When I say “locked in” I mean the positions are closed and the money is in my mattress. This is not positions still open. I have some LEAPS that are doing well, but these are not a part of the weekly results. Here are this week’s closed positions:
Inseego
This is a LEAPS position I closed. I love taking profit!
1/29/20 – Buy to Open 10 INSG 1/21/22 $10.00 C @ $2.60
6/1/20 – Sell to Close 10 INSG 1/21/22 $10.00 C @ $4.70
Profit +$2100
Draftkings
This was a Covered Call but I was not assigned. I still own the 500 shares.
6/1/20 – Sell to Open 5 DKNG 6/5/20 $45.00 C @ $2.10 (+$1050)
6/5/20 – Expired 5 DKNG 6/5/20 $45.00 C
Profit +$1050
Peloton
PTON traveled way above my Strike Price but dropped back down. I bought the stock at $45.42 and sold the $46 Call. The stock closed at $45.90. I should be able to get another Call sold on Monday for a nice premium. I’m holding 2000 shares.
6/1/20 – Sell to Open 20 PTON 6/5/20 $46.00 C @ 50¢ (+$1000)
6/5/20 – Expired 20 PTON 6/5/20 $46.00 C
Profit +$1000
Occidental Petroleum – Covered Call
This was a Covered Call where I was assigned. I bought the stock at $13.90 and sold the $14 Call. The stock took off! The stock close at $20.79. A bit of an Opportunity Lost. No Problem! Can’t worry about it.
5/28/20 – Buy 1000 Shares OXY @ $13.90
6/5/20 – Assigned 1000 Shares OXY @ $14.00
Profit +$100
6/1/20 – Sell to Open 10 OXY 6/5/20 $14.00 C @ 30¢ (+$300)
6/5/20 – Expired 10 OXY 6/5/20 $14.00 C
Profit +300
Nvidia
Bought the stock at $361. It really didn’t move normally this week, along with all the chip companies. The stock was down most of the week. I finally got a Call sold on Thursday. Percentage wise, not much of a premium, but the 1 day Call gave me $300. I’m happy! And I still own the stock for another Call this week.
6/4/20 – Sell to Open 2 NVDA 6/5/20 $362.50 C @ $1.50 (+$300)
6/5/20 – Expired 2 NVDA 6/5/20 $362.50 C
Profit +$300
Nutanix – Triple Play Hedge
Check out this trade. I did a 5 contract Triple Play Hedge with NTNX. I bought 500 shares at $23.70 and sold the $24, $25 and $26 Calls. For you new subscribers please read the page. The Triple Play Hedge is my invention where I do 1 Covered Call and 2 Naked Calls as hedging. The stock closed at $23.68, just 2¢ below where I bought. The result is I keep the stock and keep the 3 premiums which add up to $1200. Not bad for a 5 contract trade on a $23.70 stock. I will get another Call sold this week. Hopefully Monday.
5/29/20 – Sell to Open 5 NTNX 6/5/20 $24.00 C @ $1.15 (+$575)
6/5/20 – Expired 5 NTNX 6/5/20 $24.00 C
Profit +$575
5/29/20 – Sell to Open 5 NTNX 6/5/20 $25.00 C @ 80¢ (+$400)
6/5/20 – Expired 5 NTNX 6/5/20 $25.00 C
Profit +400
5/29/20 – Sell to Open 5 NTNX 6/5/20 $26.00 C @ 45¢ (+$225)
6/5/20 – Expired 5 6/5/20 $26.00 C
Profit +$225
Total Weekly Gain +$6050
I would love to do this every week. It would be over a whopping 300 grand a year. It can be done! Keep studying!
I hope you have a great weekend! I will! I’m going to see my daughter and her family for the first time in 3 months. That’s more exciting than the $6050 lol.
Successful Trading,
Steve
The Options Coach