Results Week Ending 7/17/20

I had another good week of bringing in premiums. However, it is not reflected in my account like past weeks. This is a good week to see why I like to get assigned. With all the trades below I was only assigned on 2 of my Covered Calls. I am not happy with this. I do keep all the premiums, and some are large, but if I wasn’t assigned this means the stock is lower than where I bought it. In most cases anyway!

Everyone develops their own strategy and philosophy. When it comes to Covered Calls, I want to get assigned. I’m a trader not a stock investor. I want to get assigned on my Covered Calls, free up the money, and start over again next week. If I don’e like the way the market looks next week I sell Naked Calls. If I don’t get assigned I don’t have the choice. I have to try to sell another Call on the shares I still own. If it dropped to low to get a good premium the money tied up in that stock has to stay idle until the stock comes back up. I want to get assigned and move on to the next deal. This might not be your strategy according to your philosophy, but it’s mine!

Let me list the many trades I had this week.

Peloton

I sold an option on PTON and the same day the stock went down. An hour or 2 later I did a “Buy to Close” to take profit with the hope the stock would return back up to sell another Call with the higher premium. It didn’t work in my favor. It would have been better if I stuck with this Call I sold until expiration. I did lock is $600.

7/13/20 – Sell to Open 10 PTON 7/17/20 $69.00 @ $2.00 (+$2000)

7/13/20 – Buy to Close 10 PTON 7/17/20 $69.00 C @ $1.40 (-$1400)

Profit +$600

Netflix

This turned out to be a Day Trade. It was a Naked Call with NFLX which might sound crazy but it was $85 Out-of-the-Money. I was out quickly with a $303 profit.

7/13/20 – Sell to Open 1 NFLX 7/17/20 $650.00 C @ $9.03 (+$903)

7/13/20 – Buy to Close 1 NFLX 7/17/20 $650.00 C @ $6.00 (-$600)

Profit +$303

Tesla

Another Day Trade. Actually it was a few minute. This was with the stock not an option.

7/14/20 – Buy 100 Shares TSLA @ $1510.00

7/14/20 – Sell 100 Shares TSLA @ 1515.00

Profit $500

Tesla

Another Day Trade. This was with an option.

7/15/20 – Buy to Open 1 TSLA 12/18/20 $1500 C @ $388.00

7/15/20 – Sell to Close 1 TSLA 12/18/20 $1500 C @ $398.00

 Profit +$1000

Tesla

Again, another Day Trade! I’m not a Day Trader. It just worked out this way.

7/15/20 – Buy to Open 1 TSLA 12/18/20 $1500 C @ $390.00

7/15/20 – Sell to Close 1 TSLA 12/18/20 $1500 C @ $400.00

Profit $1000

Kohl’s

This was a Covered Call and I was assigned. I bought the shares last week and sold a Call but wasn’t’t assigned. This week I sold another Call and was assigned.

7/8/20 – Buy 1000 Shares KSS @ $21.25

7/17/20 – Assigned 1000 Shares KSS @ $21.50

Profit +$250

7/10/20 – Sell to Open 10 KSS 7/17/20 $21.50 C @ 75¢ (+$750)

7/17/20 – Expired 10 KSS 7/17/20 $21.50 C

Profit +$750

Micron

I really don’t like the way MU is moving. I bought it a few weeks ago on their good earnings to do a Covered Call. I was hoping for an assignment but I wasn’t. I wasn’t assigned again this week. It’s a great stock and all funds and big investors own it, but It’s a few dollars below where I bought. I like assignment! However, this was a great premium!

7/13/20 – Sell to Open 10 MU 7/17/20 $52.00 C @ $1.20 (+$1200)

7/17/20 – Expired 10 MU 7/17/20 $52.00 C

Profit +$1200

United Airlines

Covered Call, no assignment!

7/13/20 – Sell to Open 5 UAL 7/17/20 $36.00 C @ 50¢ (+$250)

7/17/20 – Expired 5 UAL 7/17/20 $36.00 C

Profit +$250

Nvidia

Sold a Call but no assignment. But with one the stock closed above where I bought in. I should get another Call sold with a nice premium on Monday.

7/14/20 – Sell to Open 1 NVDA 7/17/20 $410.00 C @ $8.00 (+$800)

7/17/20 – Expired 1 NVDA 7/17/20 $410.00 C

Profit +$800

Draftkings

A Covered Call with assignment. Hallelujah!

6/30/20 – Buy 1000 Shares DKNG @ $33.97

7/17/20 – Assigned 1000 Shares DKNG @ $34.00

Profit +$30

7/15/20 – Sell to Open 10 DKNG 7/17/20 $34.00 C @ 50¢ (+$500)

7/17/20 – Expired 10 DKNG 7/17/20 $34.00 C

 Profit +$500

Peloton

No assignment, but a great premium for a 1 day contract.

7/16/20 – Sell to Open 10 PTON 7/17/20 $63.50 C @ $1.00 (+$1000)

7/17/20 – Expired 10 PTON 7/17/20 $63.50 C

Profit +$1000

Draftkings

Covered Call, no assignment. Another great 1 day trade. Try again this week!

7/16/20 – Sell to Open 10 DKNG 7/17/20 $36.00 C @ 85¢ (+$850)

7/17/20 – Expired 10 DKNG 7/17/20 $36.00 C

Profit +$850

Total Weekly Gain +$9033

Enjoy the rest of your weekend. It’s gonna be a hot one in NYC!

Successful Trading,

Steve

The Options Coach