Results Week Ending 8/21/20
There are weeks when I lock in a lot of money but my account doesn’t reflect it right away. This is because I didn’t get assigned on Covered Calls and the stocks are down a little from where I bought. The money I did lock in are the premiums from the Covered Calls. This week is very different! I locked in a lot of money and my account shows it, in a huge way! Week ending 8/21/20 in the biggest week I had since I started Main Street beats Wall Street.
I only had 1 Covered Call that was assigned, but it was a big one with Square. Most of the big money gains were with Apple and Tesla.
I always write about how I frown upon buying short term options. The options I bought with Apple and Tesla are LEAPS, long term options. The money I locked-in to put into this report are LEAPS that I bought and already sold. The positions are closed! I still have a bunch more LEAPS with both stocks which I plan on holding until the split. Next Monday, August 31st both stocks will open the trading day at their split adjusted prices.
Watch for my article on these splits and the LEAPS positions I hold. It will be posted before the end of the weekend.
Apple and Tesla have been moving off the charts. My account went up 24k on Thursday and 19k on Friday. This does not include the gains posted today. These gains in my account are on the positions I still hold. These gains are not locked in. The gains posted today are on positions I already exited. If the stocks continue to move in the direction they have been these new gains will be in a future post when I exit these positions.
Let’s take a look at the trades that gave me the biggest week ever.
Walmart
I still like Walmart (WMT), and there was a lot of time left on this LEAPS, but the stock was high and I wanted to free up some money to do what I’m doing with Apple and Tesla.
5/1/20 – Buy to Open 1 WMT 1/21/22 $120.00 C @ $15.90
8/17/20 – Sell to Close 1 WMT 1/21/20 $120.00 C @ $24.50
Profit +860
Occidental Petroleum
I am very upset with the way OXY is moving. I got into this position because Warren Buffett was making a huge investment into the company. It was a mistake! I did bring in some premiums but the stock really tanked. Plus, last week Buffett bailed completely out of his investment taking over a 10 billion dollar loss. The stock did receive an upgrade this week, and I hope it recovers, but I sold 200 of my 1000 shares. Taking a $1930 loss on the 200 shares. The good thing is even with this loss I still had the biggest week ever.
6/8/20 – Buy 200 Shares OXY @ $23.75
8/17/20 – Sell 200 Shares OXY @ $14.10
Loss -$1930
Barrick Gold Corp
I really like gold right now. I bought 1000 shares of GOLD and 1000 shares of GDX. I decided to cut down on my exposure to the shiny metal and sell my 1000 shares of GOLD. I also wanted to free up money for my Apple and Tesla positions. But, make no mistake, I think gold is going up and I might increase my position as soon as the mega tech stocks split.
8/4/20 – Buy 1000 Shares GOLD @ $29.55
8/17/20 – Sell 1000 Shares GOLD @ $29.75
Profit +$200
Tesla
This was the start of my huge week. On Friday, 8/14, I bought 1 contract of this Tesla LEAPS. Monday, the next market day, Tesla went up big. I know I want to hold positions into the split but I also like locking in money. And selling this position locked in $7500! A 23% gain in 1 market day.
8/14/20 – Buy to Open 1 TSLA 1/15/21 $1650.00 C @ $320.00
8/17/20 – Sell to Close 1 TSLA 1/15/20 $1650.00 C @ $395.00
Profit +$7500
Apple
This LEAPS position I had from before the split announcement. I held it for less than a month and decided to cash in knowing I have many other LEAPS with Apple. This was a 111.9% gain in the 3 weeks.
7/23/20 – Buy to Open 1 AAPL 1/21/22 $380.00 C @ $58.50
8/18/20 – Sell to Close 1 AAPL 1/21/22 $380.00 C @ $124.00
Profit +$6550
Tesla
The big numbers continue! Bought this LEAPS on Monday and sold on Thursday. One of my largest single trade gains ever. This gave me a return of 32% in 4 days.
8/17/20 – Buy to Open 1 TSLA 1/15/21 $1790.00 C $340.00
8/20/20 – Sell to Close 1 TSLA 1/15/21 $1790.00 C @ $450.00
Profit +$11,000
Visa
Another position with a lot of time remaining. Again, I wanted to free up money in my margin account for Apple and Tesla. I also didn’t like the was Visa was moving. Right now I like Square better. I’ll take the 50 bucks and move on.
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
Inseego
Inseego was a 5G stock that was moving great. After earnings it really slowed down. Before Earnings, with the stock in the $14 area I sold a Call to bring in some premium. The stock never got close to the $17.50 Strike Price. The Call expired and I kept the $750 premium. I still own, and still like the stock. I’m in this stock at $12.75. This was under a 3 week Call and I got a 5.88% return. Not bad!
8/3/20 – Sell to Open 10 INSG 8/21/20 $17.50 C @ 75¢ (+$750)
8/21/20 – Expired 10 INSG 8/21/20 $17.50 C
Profit +$750
Square – Assigned Covered Call
I bought 500 shares of SQ on 8/5 at $153.25 and bought another 500 shares on 8/17 at $47.50. I owned 1000 shares at an average of $150.37. After buying the 2nd 500 shares I sold a 10 contract 8/21/20 $155 Call. The stock closed at $155.10 and I was assigned. I locked in a $1200 premium and the stock gain was $4630. This was a fantastic Covered Call locking in a total of $5830. Getting assigned really pushed the weekly gain over the top!
8/5/20 – Buy 1000 Shares SQ @ $150.37
8/21/20 Assigned 1000 Shares SQ @ $155.00
Profit +$4630
8/17/20 – Sell to Open 10 SQ 8/21/20 $155.00 C @ $1.20 (+$1200)
8/21/20 – Expired 10 SQ 8/21/20 $155.00 C
Profit +$1200
United Airlines
This was a Covered Call with UAL where I wasn’t assigned, locked in a nice premium, and I’ll try to sell another Call this week.
8/17/20 – Sell to Open 10 UAL 8/21/20 $36.00 C @ 50¢ (+$500)
8/21/20 – Expired 10 UAL 8/21/20 $36.00 C
Profit +$500
Peloton
Another Covered Call where I was not assigned. If you are a loyal reader you know I already sold another Call to expire next week. That one gave me a premium of $1200.
8/18/20 – Sell to Open 10 PTON 8/21/20 $72.00 C @ 50¢ (+$500)
8/21/20 – Expired 10 PTON 8/21/20 $72.00 C
Another week with a lot of trades but look at the gain. And this is with a $1930 loss on OXY.
Total Weekly Gain +$31,810
I’ve been seeing a lot of students the last few weeks. Grasshoppers, if this doesn’t inspire you to learn, stick to a plan and stay disciplined, nothing will. You know I don’t believe in a “get rich quick” scheme. Look at some of my past week’s results. To do these numbers without a get rich quick scheme is very rewarding.
My goal for the year is set at 65%. I don’t want to speak too soon because I still have a lot of positions going into these splits and it might not work out the way I want. If my LEAPS work out the way I think they will, you will be surprised with my YTD numbers. I’ll hold off on reporting my YTD numbers until after the splits on August 31st.
Watch for my next article on LEAPS and the upcoming splits.
Have a great weekend!
Successful trading,
Steve
The options Coach