Results Week Ending 8/28/20
It’s been many years since I used my Split strategy. That’s because splits have become a thing of the past. I’m not sure the reason for over priced stocks to collectively avoid this maneuver to make their stocks more attractive and affordable, but I’m happy Apple broke this “no split” streak.
On July 30th Apple announced a 4:1 split, and then on August 11th Tesla announced a 5:1 split. This might sound crazy, but these announcements have the potential to change my life. I can’t even imagine what someone could do with an account worth millions, using my split strategy.
Last week I locked in $31,000, which was my biggest week to date. This week I beat that by $5000. Mainly because of my split strategy used on Apple and Tesla. My short term split strategy will not be done until this Monday afternoon. If it continues to work the way I think it will. I will have made life changing money. I’ll be writing a report at the conclusion of my strategy, which will be Monday or Tuesday. Most likely Monday. I’m hoping both stocks have a big pop Monday morning and I exit all my Long option positions by 1 or 2 o’clock. Anyone who loves Apple or Tesla will be able to enter the stock at a reduced price. Apple will open on Monday morning at about $125 per share, and Tesla at about $443. I think people from all over the world will be taking advantage of the lower than normal prices. If The stocks moved too much in the last few weeks, and do not make this predicted pop, I’ll be out Monday morning with the profit I have. Watch for my report.
This week I did really well with Apple and Tesla, but I also had many other successful trades. Unlike past weeks I was assigned on more positions than normal. Take a look at the week’s trades.
Many of my trades I exit I leave money on the table. I don’t care! I love taking profit. If I see that my yearly percentage gains are not satisfactory I’ll change my strategy. So far this is not the case.
Microsoft
This is a case in point. I sold a MSFT LEAPS and the next day the TiK Tok deal started looking better and the stock went up. No Problem! I’ll never go broke by taking profit!
6/11/20 – Buy to Open 1 MSFT 1/21/22 $195.00 C @ $27.00
8/24/20 – Sell to Close 1 MSFT 1/21/22 $195.00 C @ $42.85
Profit +$1585
Apple
I exited this position knowing I would be getting back in on a pull back. I am back in while locking in $15K. Let’s see how the new position does Monday. This position did well because of the split announcement. I got in this position as part of my split strategy. And I got back in because of the upcoming split.
8/14/20 – Buy to Open 5 AAPL 1/15/21 $460.00 C @ $43.80
8/24/20 – Sell to Close 5 AAPL 1/15/21 $460.00 C @ $74.00
Profit $15,100
Tesla
This was a split strategy play. I was in it for 1 or 2 hours.
8/24/20 – Buy to Open 1 TSLA 1/15/21 $2000.00 C @ $365.00
8/24/20 – Sell to Close 1 TSLA 1/15/20 $2000.00 C @ $400.00
Profit +$3500
Tesla
Another split play. I was in this one for 1 day.
8/25/20 – Buy to Open 1 TSLA 1/15/21 $2000.00 C @ $365.00
8/26/20 – Sell to Close 1 TSLA 1/15/21 $2000.00 C @ $415.00
Profit +$5000
Slowly I’m dipping my OXY position. It’s just not cutting it! I’d rather take the loss and use the money elsewhere. The way it looks I’m gonna need a few tax write-offs. I still own 700 shares. Before I sell I’m still hoping for a little pop.
6/8/20 – Buy 100 Shares OXY @ $23.75
8/27/20 – Sell 100 Shares OXY @ $13.00
Loss -$1075
Square
Square has been moving in the $150 – $156 area. I think this position can do very well because it goes out to 2022. But, I like profit! Plus, I’m getting worried about this market. We could see a pull back after the Apple and Tesla split, and we have the crazy election coming. I’ll be writing about my election strategy after the split.
8/10/20 – Buy to Open 1 SQ 1/21/22 $140.00 C @ $37.00
8/27/20 – Sell to Close 1 SQ 1/21/22 $140.00 C @ $48.00
Profit +$1100
Nvidia
NVDA had a huge day yesterday. I decided to lock in the money. 8 days, $4800! In the mattress!
I got out of this position a few minutes before the close. A nice way to end the week.
8/20/20 – Buy to Open 2 NVDA 1/15/21 $490.00 C @ $60.80
8/28/20 – Sell to Close 2 NVDA 1/15/20 $490.00 C @ $84.80
Profit +$4800
Peloton – Assigned Covered Call
Assigned Covered Call. I bought the stock at $72.25 and sold the In-the-Money $72 Call. I signed up for the higher premium with the chance of getting assigned and losing $250. This is what happened!
8/3/20 – Buy 1000 Shares PTON @ $72.25
8/28/20 – Assigned 1000 Shares PTON @ $72.00
Loss -$250
8/20/20 – Sell to Open 10 PTON 8/28/20 $72.00 C @ $1.20 (+$1200)
8/28/20 – Expired 10 PTON 8/28/20 $72.00 C
Profit +$1200
I don’t really look at the $250 as a loss because I did it on purpose for the higher premium. I look at it as a “give back.”
Draftkings
Covered Call without assignment.
8/18/20 – Sell to Open 10 DKNG 8/28/20 $40.00 C @ 85¢ (+$850)
8/28/20 – Expired 10 DKNG 8/28/20 $40.00 C
Profit +$850
UnitedAirlines – Assigned Covered Call
6/15/20 – Buy 1000 Shares UAL @ $35.62
8/28/20 – Assigned 1000 Shares UAL @ $36.00
Profit +$380
8/24/20 – Sell to Open 10 UAL 8/28/20 $36.00 C @ 40¢ (+$400)
8/28/20 – Expired 10 UAL 8/28/20 $36.00 C
Profit +$400
Square – Assigned Covered Calls
Check out this Covered Call with assignment. $1500 on the stock and $1500 premium. On only 500 shares. Great trade!
8/24/20 – Buy 500 Shares SQ @ $152.00
8/28/20 – Assigned 500 Shares SQ @ $155.00
Profit +$1500
8/24/20 – Sell to Open 5 SQ 8/28/20 $155.00 C @ $3.00 (+$1500)
8/28/20 – Expired 5 SQ 8/28/20 $155.00 C
Profit +$1500
Starbucks – Assigned Covered Call
8/25/20 – Buy 1000 Shares SBUX @ $81.70
8/28/20 – Assigned 1000 Shares SBUX @ $82.00
Profit +$300
8/24/20 – Sell to Open 10 SBUX 8/28/20 $82.00 C @ $1.10 (+$1100)
8/28/20 – Expired 10 SBUX 8/28/20 $82.00 C
Profit +$1100
Total Weekly Gain +$36,990
There it is, my biggest week ever.
I just looked up some old records to see my biggest week in the “old days.” I had a $27,000 week the first week of 1999. That week I played 5 stocks splits with Amazon, Microsoft, IBM, Lucent and Micron. Also splitting that week was Compuwear, Sun MicroSystems and Transamerica.
That was a wild time! This is when I developed my split strategy. I dusted it off and used it again this week. I hope the splitting days come back!
Have a great weekend!
Successful trading,
Steve
The Options Coach