Results Week Ending 6/12/20
What a wild ride the market was this week. And I think we’ll see many more like it. If you want to be a trader you better put your seat belt on evaluate you “Risk Tolerance.”
If you decided to test the waters of buying options, after Thursday, you know why I frown upon it. If you read Main Street beats Wall Street you are probably in the beginning stages of your options trading career. You have no business buying options. Especially short term options.
Me, I’ve been doing this for a long time and I still don’t buy short term options. If I buy options they are LEAPS, which I’m a big fan of. The bottom line is, stick to selling options!
I had a lot of trades come to an end this week. All involved selling options. In a crazy week like this I was also assigned on a few. After Thursday, that’s surprising! 3 out of 5 days this week were big down days. I was still able to lock in over 10 grand. That’s right, this money is in my mattress! If that’s not enough to convince you to stick to selling you should re-evaluate what you’re in this for.
Let’s take a look at my many trades of the week.
Nutanix
I owned 1500 shares of NTNX. I reduced my position by 500 shares.
5/29/20 – Buy 500 Shares of NTNX @ $23.70
6/8/20 – Sell 500 Shares NTNX @ $24.15
Profit +$225
Occidental Petroleum
Early in the week I sold a 10 contract Naked Call with OXY. The stock made a move down and I was able to get out of the trade keeping $500 of the $1000 I signed up for. I was in the position for about an hour.
6/8/20 – Sell to Open 10 OXY 6/12/20 $27.00 C @ $1.00 (+$1000)
6/8/20 – Buy to Close 10 OXY 6/12/20 $27.00 C @ 50¢ ($500)
Profit +$500
Occidental Petroleum
This was an At-the-Money Covered Call where I was assigned.
5/26/20 – Buy 1000 Shares OXY @ $14.50
6/12/20 – Assigned 1000 Shares OXY @ $14.50
Profit 0
6/1/20 – Sell to Open 10 OXY 6/12/20 $14.50 C @ 40¢ (+$400)
6/12/20 – Expired 10 OXY 6/12/20 $14.50 C
Profit +$400
Nutanix
This was a Covered Call. I was not assigned. I’ll sell another Call this week.
6/8/20 – Sell to Open 10 NTNX 6/12/20 $24.00 C @ 55¢ (+$550)
6/12/20 – Expired 10 NTNX 6/12/20 $24.00 C
Profit +$ 550
Occidental Petroleum
Covered Call. I was not assigned. Great premium. Hopefully I’ll get another Call sold this week. OXY dropped a bit.
6/8/20- Sell to Open 10 OXY 6/12/20 $24.00 C @ $1.80 (+$1800)
6/12/20 – Expired 10 OXY 6/12/20 $24.00 C
Profit +$1800
Peloton
This was the crown jewel of this week’s trades. I owned 2000 shares. I sold a 20 contract Covered Call. I brought in a crazy premium of $3100, plus I was assigned and received another $1160 from the stock sale. This trade brought in a total of $4260.
5/26/20 – Buy 2000 Shares PTON @ $45.42
6/12/20 – Assigned 2000 Shares PTON @ $46.00
Profit +$1160
6/9/20- Sell to Open 20 PTON 6/12/20 $46.00 C @ $1.55 (+$3100)
6/12/20 – Expired 20 PTON 6/12/20 $46.00 C
Profit +$3100
Draftkings
Covered Call without assignment. Hopefully I’ll get another Call sold this week.
6/9/20 – Sell to Open 5 DKNG 6/12/20 $42.00 C @ $1.20 (+$600)
6/12/20 – Expired 5 DKNG 6/12/20 $42.00 C
Profit +$600
Nvidia
Covered Call without assignment. The stock has been very volatile. I’ll take $1000 premiums all year long. I’ll get another Call sold this week.
6/9/20 – Sell to Open 2 NVDA 6/12/20 $365.00 C @ $5.00 (+$1000)
6/12/20 – Expired 2 NVDA 6/12/20 $365.00 C
Profit +$1000
Nvidia
This was a late week Naked Call. After watching NVDA for a long time I felt if I went Out-of-the-Money enough I would stay out of trouble. It worked for a profit of $300.
6/10/20 – Sell to Open 1 NVDA 6/12/20 $382.50 C @ $3.00 (+$300)
6/12/20 – Expired 1 NVDA 6/12/20 $382.50 C
Profit +$300
United Airlines – Roll-Out
On May 18th I sold a Naked Call on UAL. The stock took off. It went up into the $40’s. I didn’t want to take a lose so I did a Roll-Out. The stock came back down and I did the Roll-Out. I also bought the stock to cover. The Roll-Out came to an end this Friday and the result of all the trades is a positive $750. +$100 on the stock sale and the premiums came out +$650. It’s very important to know how to make adjustment trades. This one worked out well. If you have any questions on how a Roll-Out works send me an email.
5/29/20 – Buy 1000 Shares UAL @ $27.90
6/12/20 – Assigned 1000 Shares UAL @ $28.00
Profit +$100
5/18/20 – Sell to Open 10 UAL 5/29/20 $26.00 C @ 50¢ (+$500)
5/29/20 – Buy to Close 10 UAL 5/29/20 $26.00 C @ $1.80 (-1800)
5/29/20 – Sell to Open 10 UAL 6/12/28 $28.00 C @ $1.95 (+$1950)
6/12/20 – Expired 10 UAL 6/12/20 $28.00 C
Profit +650
Total Weekly Gain $10,385
Have a great weekend!
Successful Trading,
Steve
The Options Coach