Results Week Ending 7/24/20

This week was very similar to last week. I locked in some nice premiums but I was only assigned on 2 Covered Calls. This leaves me with a list of holdings to sell Calls against this week. I would love a big up day on Monday to get the week started. However, I’m not optimistic! What ever the market does I’ll try to have another week of locking in some nice premiums.

The first trade I exited this week was with HUYA. I took a shot with this one because it had very high option activity. I got in a Covered Call with the hopes the stock was gonna pop. It never did!

One thing you have to remember about high option activity, or unusual activity, is you really can’t tell who initiated the option contract. Was it mostly people buying options and they found people selling, or did the high activity start with a ton of people selling options. You really can’t tell. All options have a buyer and a seller. The motive for high option activity could have been because a lot of people were selling options because they felt the stock was going down. I hope this makes sense, but the bottom line is you really can’t tell if a stock is gonna go up or down just by the option activity. Don’t let the CNBC’s Najarian Bros fool you with there money making scheme.

Embarrassing this about this trade is I first heard about the high option activity from the Najarians Bros lol. We all live and learn. One of the reasons I do Main Street beats Wall Street is to help Grasshoppers learn from my mistakes. Both old mistakes and new ones, like this one!

HUYA

I bought 1000 shares of HUYA at $25.17 and sold an In-the-Money Call. I sold 10 7/24/20 $25 Calls. I sold an In-the-Money Call because I was not convinced the stock was gonna move so I figured I might as well take the higher premium in case it goes down. Right out of the gate I didn’t like the way it was moving so in one day I got completely out of the position with only a $100 loss. I sold the stock and did a “Buy to Close” in the option. I lost $920 on the stock but I kept the high premium of $820.

7/21/20 – Buy 1000 Shares HUYA @ $25.17

7/22/20 – Sell 1000 Shares HUYA @ $24.25

Loss – $920

7/21/20 – Sell to Open 10 HUYA 7/24/20 $25.00 C @ $1.07 (+$1070)

7/22/20 – Buy to Close 10 HUYA 7/24/20 $25.00 C @ 25¢ (-$250)

Profit +$820

Draftkings

This was one of the better trades of the week. It was a Covered Call I was assigned on. Exactly what I love! Made $100 on the stock and keep the $2000 premium.

7/16/20 – Buy 1000 Shares DKNG @ $35.90

7/24/20 – Assigned 1000 Shares DKNG @ $36.00

Profit +$100

7/20/20 – Sell to Open 10 DKNG 7/24/20 $36.00 C @ $2.00 (+$2000)

7/24/20 – Expired 10 DKNG 7/24/20 $36.00 C

Profit +$2000

Nvidia

This was another Covered Call with assignment. This was done with 100 shares of NVDA. Made a nice $250 on the stock and a great $1000 on the premium.

7/14/20 – Buy 100 Shares NVDA @ $404.75

7/24/20 – Assigned 100 Shares NVDA @ $407.50

Profit + $275

7/20/20 – Sell to Open 1 NVDA 7/24.20 $407.50 C @ $10.00 (+$1000)

7/24/20 – Expired 1 NVDA 7/24/20 $407.50 C

Profit +$1000

Draftkings

This was a 5 contract Call that expired. On this one I was not assigned.

7/6/20 – Sell to Open 5 DKNG 7/24/20 $41.50 C @ 60¢ (+$300)

7/24/20 – Expired 5 DKNG 7/24/20 $41.50 C

Profit +$300

Peloton

This is was one of my PTON trades. I had 2. I was not assigned on either one. I’ve been making a lot of money with this stock. It might be running out go gas. Still got a great premium!

7/15/20 – Sell to Open 10 PTON 7/24/20 $69.00 C @ $1.10 (+$1100)

7/24/20 – Expired 10 PTON 7/24/20 $69.00 C

Profit +$1100

United Airlines

Another stock I’ve been trading a lot with. No assignment so I keep the premium and try again this coming week.

7/20/20 – Sell to Open 5 UAL 7/24/20 $37.00 C @ 80¢ (+$400)

7/24/20 – Expired 5 UAL 7/24/20 $37.00 C

 Profit +$400

Peloton

The other PTON trade. Again, no assignment, but a nice premium!

7/20/20 – Sell to Open 10 PTON 7/24/20 $64.00 C @ $1.20 (+$1200)

7/24/20 – Expired 10 PTON 7/24/20 $64.00 C

Profit +$1200

Micron

This is about the 4th or 5th week I brought in a premium on the same stock because of no assignment. Hopefully get another Call sold this week.

7/20/20 – Sell to Open 10 MU 7/24/20 $51.50 C @ 50¢ (+$500)

7/24/20 – Expired 10 MU 7/24/20 $51.50 C

Profit +$500

Draftkings

This is the 3rd trade of the week with DKNG. Assigned on a 10 contract and not assigned on (2) 5 contract Calls. As you see this is one of the 5 contracts.

7/21/20 – Sell to Open 5 DKNG 7/24/20 $38.50 C @ $1.50 (+$750)

7/24/20 – Expired 5 DKNG 7/24/20 $38.50 C

Profit +$750

Total Weekly Gain +$7525

You know you’re doing well when you’re disappointed with this week!

Enjoy the rest of the weekend.

Successful Trading,

Steve

The Options Coach