Results Week Ending 8/14/20
This week I locked in more that I thought I would And my account is up substantially from last week. I am very happy where I am where I am so far this year. I am up 56% and my goal for the year is 65%. Believe it or not I set my goal a little low this year because of COVID-19.
There are 2 big reasons I’m very optimistic to hit my goal this year. #1 is we still have over 4 months left to the year. #2 is Apple and Tesla. There hasn’t been a stock split on a big name stock in a long time. Back when I got started there were stock splits very often. Back than, when a stock split, there was a pattern the stock charts followed pretty religiously when it split. There was the rumor, the announcement, the split, the post split and the post split slam. After these 5 areas in the chart where an investor would enter or exit, the stock was off to the races. The big question is, since it was so long since a split, will the charts of Apple and Tesla follow this pattern? Will the market have “split chart” memory? To start with, the first entering spot was never there. There was never a rumor of these splits! No one was thinking split! Splits are old school moves by the board of directors. They really surprised us with these announcements. We didn’t have the rumor but on the announcements both stocks moved big, as they did years ago with any split.
I do not make recommendations on stocks, but for myself, I feel these 2 stocks will follow the chart patterns of past splits. And I am investing accordingly! I think these trades will get me over the 65% mark.
Apple is doing a 4:1 split and Tesla a 5:1. Both will be splitting at the end of August, only 2 week away. On the announcements I bought 3 LEAPS on Apple and 1 LEAPS on Tesla. Yesterday I bought another 5 LEAPS on Apple. The options act the same as stock. I will end up with 4X as many LEAPS with Apple, and 5X as many LEAPS with Tesla. If these splits follow the normal pattern for splits these positions will do very well. If not, I think I’ll also do very well but I might have to hold a little longer. This is why I buy LEAPS and not short term options. Right now I plan on getting out before the post split slam, which happens within a few days after the split. If the stocks pull back on the split I’ll hold the positions longer. Before you invest in any prediction, do your homework!
I’ll be writing more on my Apple and Tesla split strategy in about a week.
Let’s take a look at this weeks trades.
Draftkings
I sold this Call on a Friday. On Monday the stock went down and I locked in some profit with the hopes the stock would go back up and I get another Call sold. This is what happened. The 2nd Call is listed below.
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
AT&T
Being a trader I grew a little impatient with AT&T. I was in it for the dividend but I didn’t like the way the stock was moving. I like dividends but I also like to make some on the stock. I decided to free up some cash to put into Apple and Tesla. I feel these investments will work better.
7/23/20 – Buy 500 Shares T @ $29.65
8/14/20 – Sell 500 Shares T @ $30.03
Profit +$190
Walmart
This was an option so I locked in some profit. I could have held longer but I felt 4 months was long enough. I still own one other LEAPS with a Strike Price of $120.
4/23/20 – Buy to Open 5 WMT 1/21/22 $130.00 C @ $17.00
8/14/20 – Sell to Close 5 WMT 1/21/20 $130.00 C @ $17.60
Profit +$300
Crowdstrike
At the open on Friday this stock jumped $3. It was a great time to get out and put some money in my mattress. The stock closed up only about 50¢. It was a nice exit!
8/10/20 – Buy to Open 18 CRWD 1/15/21 $100.00 C @ $16.00
8/14/20 – Sell to Close 18 CRWD 1/15/21/$100.00 C @ $18.00
Profit +3600
Barrick Gold Corp
This is the 2nd premium I took in on this stock, but I’m very unhappy the way the stock is moving. However, it looks like it might move on Monday. Covered Call with no assignment!
8/10/20 – Sell to Open 10 GOLD 8/14/20 $30.00 C @ 50¢ (+$500)
8/14/20 – Expired 10 GOLD 8/14/20 $30.00 C
Profit +$500
Starbucks
This is the 2nd week bringing in a nice premium. Last week was $800. This week I’m very happy, I was assigned!
8/3/20 – Buy 1000 Shares SBUX @ $75.98
8/14/20 – Assigned 1000 Shares SBUX @ $76.50
Profit +$520
8/10/20 – Sell to Open 10 SBUX 8/14/20 $76.50 C @ $1.00 (+$1000)
8/14/20 – Expired 10 SBUX 8/14/20 $76.50 C
Profit +$1000
United Airlines
I know you have seen me in UAL before. It’s been a real cash cow. And I think it will continue! On this Covered Call I was not assigned.
8/10/20 – Sell to Open 5 UAL 8/14/20 $37.00 C @ 70¢ (+$350)
8/14/20 – Expired 5 UAL 8/14/20 $37.00 C
Profit +$350
Draftkings
This was the 2nd Call I sold on these shares this week. The 1st I did a “Buy to Close” and this one expired with assignment.
8/11/20 – Sell to Open 10 DKNG 8/14/20 $38.00 C @ 55¢ (+$550)
8/14/20 – Expired 10 DKNG 8/14/20 $38.00 C
Profit +$550
Nvidia
Another Covered Call with NVDA and another assignment. I know I would probably do better if I just buy and hold NVDA but It’s not my strategy. I’m an options trader. I’m very happy with what I’ve been doing with this stock. It’s my strategy, I stick to it, and my account is growing.
8/10/20 – Buy 200 Shares NVDA @ $449.45
8/14/20 – Assigned 200 Shares NVDA @ $455.00
Profit +$555
8/12/20 – Sell to Open 2 NVDA 8/14/20 $455.00 C @ $3.00 (+$600)
8/14/20 – Expired 2 NVDA 8/14/20 $455.00 C
Profit +$600
Total Weekly Gain +$8815
Soon I’ll be writing about the Apple and Tesla splits, and I’ll also be writing about my strategy with the election getting closer.
On a funny note, my son and I went out to eat last night in Manhattan. As I was walking to my table a few people from another table called my name and said, “hey there’s the Main Street beats Wall Street guy.” lol. Thanks for reading guys!
Successful trading,
Steve
The Options Coach