Results Week Ending 7/31/20

This week was a great week, but I didn’t lock in as much as in past weeks. However, my account went up more this week. Thanks to my premiums and my Apple LEAPS.

Apple announced a 4:1 stock split which will also be for my LEAPS. The stock will split 8/31/20 and I own my LEAPS into 2022. I think Apple will move up into the split. If it splits into the $120 area I think it will be back up to the $200 area by mid 2021. If this happens my LEAPS will make me a lot of money.

The reason I like this week is I was assigned on 2000 shares of PTON, 100 shares of NVDA and 1000 shares of PINS. I have a ton of money in my margin buying power for this week. I’m excited about Monday morning.

Let’s take a look at my trades of the week, both assigned and not.

Peloton

I bought these shares and did a PTON Covered Call. On Friday the stock was In-the-Money but I felt the stock was gonna go down. I took a big chance and sold the 2000 shares and left my 20 contract Covered Call naked. I locked in $1700 on the stock sale. The stock went down as I predicted and I bought the 2000 shares back to cover the Call. It was a very dangerous, ballsy move but it worked out for me.

7/13/20 – Buy 2000 Shares PTON @ $65.90

7/31/20 – Sell 2000 Shares PTON @ $66.75

Profit +$1700

Peloton – Assigned Covered Call

After I sold the 2000 shares and locked in the $1700 profit the stock came down and I bought the 2000 shares again to cover this Call. I bought the shares At-the-Money so I didn’t make more on the stock assignment but I keep the very nice $2400 premium.

7/31/20 – Buy 2000 Shares PTON @ $66.00

7/31/20 – Assigned 2000 Shares PTON @ $66.00

Profit 0

7/28/20 – Sell to Open 20 PTON 7/31/20 $66.00 C @ $1.20 (+$2400)

7/31/20 – Expired 20 PTON 7/31/20 $66.00 C

Profit +$2400

Nvidia – Assigned Covered Call

The stock closed at $424.59 and I had a $410 Strike Price so I had a pretty big Opportunity Lost.

7/24/20 – Buy 100 Shares NVDA @ $407.60

7/31/20 – Assigned 100 Shares NVDA @ $410.00

Profit +$240

7/27/20 – Sell to Open 1 NVDA 7/31/20 $410.00 C @ $11.00 (+$1100

7/31/20 – Expired 1 NVDA 7/31/20 $410.00 C

Profit +$1100

Micron

This is the 5th week in a row I sold a Call on these shares. I’ve been bringing in some very nice premiums. I hope I get another Call sold this week.

7/27/20 – Sell to Open 10 MU 7/31/20 $52.00 C @ 75¢ (+$750)

7/31/20 – Expired 10 MU 7/31/20 $52.00 C

Profit +$750

Draftkings

I’m in these shares at $38.10. This isn’t much of a premium but it’s only 5 contracts. The premium is actually a little over 1% so it fits into my “1 Week/1%” Strategy. I’m happy with a 1 % weekly return. In fact, it’s what I look for.

7/28/20 – Sell to Open 5 DKNG 7/31/20 $37.00 C @ 40¢ (+$200)

7/31/20 – Expired 5 DKNG 7/31/20 $37.00 C

Profit +$200

Pinterest – Assigned Covered Call 

Pinterest (PINS) came out with great earnings so I made this At-the-Money trade with 2 hours left to the trading week on Friday afternoon. It worked out nicely and I made $500 in 2 hours. A nice way to end the week.

7/31/20 – Buy 1000 Shares PINS @$33.00

7/31/20 – Assigned 1000 Shares PINS @ $33.00

Profit 0 

7/31/20 – Sell to Open 10 PINS 7/31/20 $33.00 C @ 50¢ (+$500)

7/31/20 – Expired 10 PINS 7/31/20 $33.00 C

Profit +$500

Total Weekly Gain +$6890

Keep studying! My account is growing. I start August with my account up 52% YTD. Because of COVID-19 my yearly goal is set at 65%. I think if I start making very low risk trades I can hit that easy. Remember, I was up 12 percent in February, then went down 35% by the end of March. I was down 35% YTD and now up 52% YTD. That is over an 85% swing.

To start the week I have a lot in my margin buying power, I’m gonna try to be very careful. For my goal I have 5 months to go up 13%.

Enjoy the rest of the weekend.

Successful trading,

Steve

The Options Coach