Sold 2 LEAPS, 1 is Huge!

I sold 2 of my LEAPS positions. 1 with Visa and the other with Tesla.

I made these trades a little while ago, but I was in the middle of teaching a class and I didn’t have time to report them. I’m teaching a lot of classes these days. I guess a lot of people are sick of going to work. Working from home is always nice!

On 7/20/20 I bought 1 contract of the Visa 1/21/22 $195 Call. In the month I did not like the way the stock was moving. I like the payment companies but Visa isn’t moving much. The premium was actually below where I bought in, but today the stock is up. I was able to sell this position just getting my money back. I made $50.

7/20/20 – Buy to Open 1 V 1/21/22 $195.00 C @ $30.00 

8/20/20 – Sell to Close 1 V 1/21/22 $195.00 C @ $30.50

Profit +$50

I did have a lot of time left to this contract but I saw a list of stock Warren Buffett sold this week and Visa was one of them. It looks like he’s getting worried about the market because he sold a lot of different companies. With Visa he sold 575,000 shares. With this, and me not liking the way Visa was moving, I decided to put the money to work elsewhere.

The big trade of the day was with Tesla (TSLA). This morning I owned 2 contracts on TSLA, I sold one of them. I really want to hold TSLA into the split but the stock went up so much today I decided to cash in. I will be buying another LEAPS before the split. The stock is still moving up but I love taking profit. When I sold the option the stock was up $107, as I write the stock is up 138. I’m glad I still have the other option. That’s still gaining value.

I bought this option on Monday, yes this Monday! I cashed out this option with an $11,000 profit. CRAZY!

8/17/20 – Buy to Open 1 TSLA 1/15/21 $1790.00 C $340.00

8/20/20 – Sell to Open 1 TSLA 1/15/21 $1790.00 C @ $450.00

Profit +$11,000 

I invested $34,000 and made $11,000. That’s a Return on Investment (ROI) of 32.3%.

Another great example of the power of LEAPS. At this time, Tesla and Apple are a little special because of the split announcements. I’m hoping to ride these 2 stock into the split with LEAPS.

Earlier I sold some of my OXY stock at a pretty big loss, but even with that loss, I think this will be my biggest week EVER!

Successful Trading,

Steve

The Options Coach