Monday Morning Trades
Today started out pretty nice, but fell apart quickly. The DOW is up but the tech heavy NASDAQ is down 150 points.
Before things got bad I was able to get a few trades in. I sold Calls on the shares I still own from last week because of not getting assigned on Covered Calls. Today I sold Calls on GOLD, SBUX and UAL.
Sell to Open 10 GOLD 8/14/20 $30.00 C @ 50¢ (+$500)
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Sell to Open 10 SBUX 8/14/20 $76.50 C @ $1.00 (+$1000)
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Sell to Open 5 UAL 8/14/20 $37.00 C @ 70¢ (+$350)
These 3 Calls are all Risk Factor 1.
I also bought 2 LEAPS. A 2 contract Call with Crowdstrike (CRWD) and a 1 contract Call with Square (SQ).
Buy to Open 2 CRWD 1/15/21 $100.00 C @ $16.00 (Delta .57)
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Buy to Open 1 SQ 1/21/22 $140.00 C @ $37.00 (Delta .63)
Last week I sold a 10 Contract Call on my 1000 shares of Draftkings (DKNG). I received a $1 premium for $1000. Today the stock is down so I decided to lock in some profit. I did a “Buy to Close” with the premium at 35¢. I sold the Call and received a $1 premium and I bought it back for 35¢ locking in a $650 premium.
If you are having trouble understanding how Short Positions work send me an email.
8/7/20 – Sell to Open 10 DKNG 8/14/20 $40.00 C @ $1.00 (+$1000)
8/10/20 – Buy to Close 10 DKNG 8/14/20 $40.00 C @ 35¢
Profit +$650
I got into this trade on Friday. So I was in the position for less than 1 session. I have a rule, if I can lock in half of my premium when being in the position 1 day, I get out. Especially with today being Monday. I’m hoping DKNG has a bounce back and I can get another Call sold for a premium close to the original one, which is $1.
It looks like the market is fighting back. Hopefully I’ll be able to get some more work done today. I still have a bunch more stock I didn’t get assigned on last week. If it doesn’t happen today, maybe tomorrow.
Successful trading,
Steve
The Options Coach