Results Week Ending 8/7/20

My account is growing! This is why I have so many trades. Plus, leveraging with a margin account give me the ability to invest more, an hopefully make more. I look at margin as a business expense. If you compare this expense to the expenses of running a business in a brick and mortar location, it’s not even close. Rent, real estate taxes, gas & electric, water, insurance, sanitation, supplies, advertisement, commuting expense, parking, inspections, the list of expenses to run a business are endless. Take it from me, I’ve done it for years. I’ve done very well, and don’t regret being in business, but at this point in my life, I’d rather sit at my computer and trade options.

And I just renegotiated my margin interest rate. With most brokers you have to renegotiate every year. If not they will move your rate without you knowing. With my account growing I had a little negotiating power. They reduced my rate to 4%. That’s a year! I try for returns of 1% or 2% every week, and sometimes I’ll make the 4% in a week. For the amount of money I can make using their money at 4%, I’m happy to oblige.

I have many trades to report, so I’ll be brief on each. But the many trades turned into one of my biggest weeks ever. I haven’t been happy with my assignment rate. This week I was only assigned on 2 Covered Calls. Luckily none of the stock fell too much from my buy-in price, so I have a lot to work with for Monday morning.

Microsoft

I sold one of my LEAPS with a very nice profit.

2/25/20 – Buy to Open 1 MSFT 1/21/22 $175.00 C @ $25.50 

8/3/20 – Sell to Close 1 MSFT 1/21/22 $175.00 C @ $51.50

Profit +$2600

Nvidia

Sold 100 shares of the stock that made a big move.

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

8/3/20 – Sold 100 Shares NVDA @ $440.75

Profit +$3600

MasterCard

Sold a LEAPS. I owned it for only 2 weeks.

7/21/20 – Buy to Open 1 MA 1/21/22 $310.00 C @ $46.50

8/5/20 – Sell to Close 1 MA 1/21/22 $310.00 C @ $56.92

Profit +$1042

United Airlines

Covered Call I was not assigned on.

7/28/20 – Sell to Open 5 UAL 8/7/20 $37.00 C @ 60¢ (+$300)

8/7/20 – Expired 5 UAL 8/7/20 $37.00 C

Profit +$300

Draftkings

A Covered Call. I was not assigned.

7/29/20 – Sell to Open 5 DKNG 8/7/20 $41.50 C @50¢ (+$250)

8/7/20 – Expired 5 DKNG 8/7/20 $41.50 C

Profit +$250

United Airlines

Another Covered Call. This one i was assigned on. Didn’t’t make much on the stock because I sold the Call very close to At-the-Money.

7/30/20 – Buy 500 Shares UAL @ $31.90

8/7/20 – Assigned 500 Shares UAL @ $32.00

Profit +$50

8/3/20 – Sell to Open 5 UAL 8/7/20 $32.00 C @ $1.00 (+$500)

8/7/20 – Expired 5 UAL 8/7/20 $32.00 C

Profit +$500

Starbucks

A Covered Call without assignment.

8/3/20 – Sell to Open 10 SBUX 8/7/20 $75.00 C @ 80¢ (+$800)

8/7/20 – Expired 10 SBUX 8/7/20 $75.00 C

Profit +$800

Micron

Another week of bringing in a nice premium. I’ve been selling Calls for many weeks now on the same stock.

8/4/20 – Sell to Open 10 MU 8/7/20 $52.00 C @ 50¢ (+$500)

8/7/20 – Expired 10 MU 8/7/20 $52.00 C

Profit +$500

Veneck Vectors Gold Miners ETF 

Sold a Covered Call without assignment. This one I didn’t want to get assigned. I’d like to hold for a little while to see how gold moves. This was a 2 day Call.

8/5/20 – Sell to Open 10 GDX 8/7/20 $46.00 C @ 50¢ (+$500)

8/7/20 – Expired 10 GDX 8/7/20 $46.00 C

Profit +$500

Barrick Gold Corp

Another gold play I didn’t want to get assigned on.

8/5/20 – Sell to Open 10 GOLD 8/7/20 $31.50 C @ 20¢ (+$200)

8/7/20 – Expired 10 GOLD 8/7/20 $31.50 C

Profit +$200

Square

Didn’t get assigned but look at the premium for 5 contracts. Another 2 day trade.

8/5/20 – Sell to Open 5 SQ 8/7/20 $155.00 C @ $3.00 (+$1500)

8/7/20 – Expired 5 SQ 8/7/20 $155.00 C

Profit +$1500

Penn National Gaming

PENN In-the-Money Covered Call with Assignment. This is an interest play. I wanted to get assigned so I bought the stock at $48.50 and sold an In-the-Money Call with the strike Price of $48. I got into this position about 3 hours before close. I wanted to insure assignment so I used the Strike Price 50¢ In-the-Money. I knew I’d lose $500 on the stock sale but I did it for the $1000 premium. This In-the-Money Covered Call made me a $500 profit.

8/7/20 – Buy 1000 Shares PENN @ $48.50

8/7/20 – Assign 1000 Shares PENN @ $48.00

Loss -$500 

8/7/20 – Sell to Open 10 PENN 8/7/20 $48.00 C @ $1.00 (+$1000)

8/7/20 – Expired 10 PENN 8/7/20 $48.00 C

Profit +$1000

Peloton Triple Play Hedge

This is my favorite trade. Probably because it’s my own strategy. Plus it’s my favorite because it worked so well. The only thing that would have made it better is an assignment.

I bought 1000 shares of PTON at $72.25. The Triple Play Hedge involves buying the stock and selling 3 Calls. The 1st one is Covered and the next 2 are Naked. The stock fell below the Strike Price of the 1st Call so I didn’t get assigned. The result is I keep all the premiums and I try to do another Triple Play Hedge next week. The 3 premium gave me $4750. FANTASTIC!

8/3/20 – Sell to Open 10 PTON 8/7/20 $73.00 C @ $2.00 (+$2000)

8/7/20 – Expired 10 PTON 8/7/20 $73.00 C

Profit +$2000

8/3/20 – Sell to Open 10 PTON 8/7/20 $74.00 C @ $1.50 (+$1500) 

8/7/20 – Expired 10 PTON 8/7/20 $74.00 C

Profit +$1500

8/3/20 – Sell to Open 10 PTON 8/7/20 $75.00 C @ $1.25 (+$1250) 

8/7/20 – Expired 10 PTON 8/7/20 $75.00 C

Profit +$1250

Total Weekly Gain +$17,092

I hate to mess with my strategy, but with my account growing I’m making a lot of trades. I’m gonna work on making less trades. Next week I’ll have just as many because I’m still holding the stock I was not assigned on.

If you’re into gold and silver make sure you read the new article by John, our contributing writer, “Stars are Aligned for Precious Metals.” John is very knowledgeable and a fantastic writer! Hit the link below.

Stars are Aligned for Precious Metals

Any questions, send me an email.

Have a great weekend!

Successful trading,

Steve

The options Coach