Out of 1 Apple Position and 1 Tesla Position
I’m starting to exit positions which will bring a conclusion to my split strategy. With Apple doing a 4:1 and Tesla doing a 5:1, I have a lot of positions to exit. I exited 2, but have a few more orders in. I’ll post as soon as I get filled.
The first position I closed was a 4 contract Apple position. If you read my post reporting me buying a short term Call with Apple, you know I bought a 9/18/20 Call while I was teaching a student. He could not afford a position going further out with the Expiration Date, but he wanted to get in on the action. When he bought this position I also bought to go along for the ride to give emotional support. This is the first position I wanted out of because of the Time Decay worries. If the stock took a dip this position would become a loser. I put in an order to sell making a $1 profit and I was filled.
I got into this position before the split and exited today. I bought 1 contract and sold 4.
Apple Post 4:1 Split “Sell to Close”
8/27/20 – Buy to Open 1 AAPL 9/18/20 $510.00 C @ $23.75
8/31/20 – Sell to Close 4 AAPL 9/18/20 $127.50 C @ $6.95
Profit $400
I was in this trade for 1 day for a 16.8% Return.
This trade with Tesla could be the “crown jewel” trade of my career. This is a great example of the money you can make using the correct stock splitting strategy. I’m in this trade for less than 2 weeks. I invested $34,500 on a 1 contract Call, and sold the 5, post split contracts, for $41,500. This is a 120% return.
Tesla Post 5:1 Split “Sell to Close”
8/18/20 – Buy to Open 1 TSLA 1/15/21 $1900.00 C @ $345.00
8/31 20 – Sell to Close 5 TSLA 1/15/20 $380.00 C @ $152.00
Profit +$41,500
This might be my best trade ever, but I still have a lot more on the chopping block.
Clearly this trade gave me my best week ever, and it’s only Monday!
Remember, with Main Street beats Wall Street I post trades as I make them. Not last week’s or last month’s trades. You can learn a lot from this site!
Successful trading,
Steve
The Options Coach.