Results Week Ending 9/4/20
I don’t know if I procrastinated writing this report because I’m so busy, or because this week was so crazy I didn’t know where to start. The truth is it was probably both!
The main reason I’m so busy is because of the 9/11 ceremony I’m organizing. It’s really starting to get big! In addition, I always find time to fit my students in. I really love to trade and teach this material. After you read this report you will understand why.
This week was so nutty! By the end of Monday’s session I already had the biggest week of my life, and that probably will not change for a while, followed by serious market volatility and huge daily drops.
Not only was this week my biggest ever, but it was preceded by 2 weeks that also broke my all time record. 3 weeks in a row breaking records! Not only that, but this week I locked in more than the last 2 weeks combined.
Why did this happen? The answer is simple, Apple and Tesla!
With the announcement of the Apple and Tesla splits I broke open my archive notebooks to revisit my “stock strategy” strategy. I haven’t used the strategy in years. The last time was the first week of 1999 when I used it for Amazon, Microsoft, Lucent, Micron, Transamerica and Compuwear. They all split in 1 week. I did very well that week with all of these splits but the crown jewel was the Amazon 3:1 split. I locked in $20,000 with a 2 day trade. That was a lot of money in 1999.
After looking over my notes I jumped right into action. My first trades were on the split announcements. The stocks started moving immediately on the announcements. As I made big profits I was getting out of trades to stuff the mattress. All my trades were with LEAPS. As I got out of one trade I jumped back in using a higher Strike Price. Was getting in and out, and back in, a good strategy? I don’t know! Would I have done better just to stay in? Maybe! but I like locking in profit because you never know what can happen. Look at the second half of this week. Because of me exiting trades I had big weeks leading up to this week with the split on Monday. Week ending 8/21/20 I did +$31,810 and week ending 8/28/20 I did +$36,990.
To start this week I had a lot of LEAPS in place. Monday morning the market opened with Apple and Tesla listing their split adjusted prices. All of my Apple LEAPS were 4X as many as the Friday close, and Tesla I had 5X as many. Both stocks had big days Monday, but Tesla was off the charts.
I was out of most positions by 2pm on Monday. The profits were locked in! I did hold on to some Apple LEAPS that don’t expire until June 2022. I held these as a long term investment. If I sold them this week would have been even bigger. These positions took a hit in the second half of the week but I think they will work out very well.
Let’s take a look ate the trades. I listed all entrance trades with the price I paid and the contracts I bought. The trade exit is listed with the split adjustment.
Apple Post 4:1 Split “Sell to Close”
This trade is the short term option I bought with a student. Not my normal trade. I entered it to make him feel more comfortable. He didn’t have the funds to buy a longer term option but wanted to get his feet wet.
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
Tesla Post 5:1 Split “Sell to Close”
This was the first of the big trades. I entered this trade and held for a little over 2 weeks. Check out this return. 131.8% in 2 weeks.
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
Tesla Post 5:1 Split “Sell to Close”
After the last trade don’t be disappointed with this one lol. $20,500 in 10 days.
8/21/20 – Buy to Open 1 TSLA 1/15/21 $2050.00 C @ $495.00
8/31/20 – Sell to Close 5 TSLA 1/15/221 $410.00 C @ $140.00
Profit +$20,500
Tesla Post 5:1 Split “Sell to Close”
Some of these trades are breaking weekly records! Here, I locked in $27,150 with a 5 day trade.
8/26/20 – Buy to Open 1 TSLA 1/15/21 $2150.00 C @ $398.50
8/31/20 – Sell to Close 5 TSLA 1/15/21 $430.00 C @ $134.00
Profit +$27,150
Apple Post 4:1 Split “Sell to Close”
Another great 10 day trade!
8/21/20 – Buy to Open 2 AAPL 1/15/21 $480.00 C @ $44.50
8/31/20 – Sell to Open 8 AAPL 1/15/21 $120.00 C @ $19.50
Profit +$6696
Apple Post 4:1 Split “Sell to Close”
This was a 1 week trade which gave me a 41% return in 1 week!
8/25/20 – Buy to Open 5 AAPL 1/15/21 $500.00 C @ $51.00
9/1/20 – Sell to Close 20 AAPL 1/15/20 $125.00 C @ $18.00
Profit +$10,500
This is the end of me getting out of my split strategy LEAPS. The remaining trades below are my normal weekly trades I made. My account was growing so fast I said I might as well put it to work. The trades below would have given me a great week on their own.
Nvidia
This was a 5 contract Naked Call I got into and exited the same day.
9/1/20 – Sell to Open 5 NVDA 9/4/20 $570.00 C @ $8.00 (+$4000)
9/1/20 – Buy to Close 5 NVDA 9/4/20 $570.00 C $ $4.00 (-$400)
Profit +$2000
Nvidia
The last trade worked so well I did it again the next day for another same day trade.
9/2/20 – Sell to Open 5 NVDA 9/4/20 $580.00 C @ $8.00 (+$4000)
9/2/20 – Buy to Close 5 NVDA 9/4/20 $580.00 C @ $5.90 (-$2950)
Profit +$1050
Square
This was a Covered Call where I was not assigned. I locked in some nice money but the second half of the week all stocks dropped. I hope they recover this week. I still own 1000 shares of SQ.
9/1/20 – Sell to Open 10 SQ 9/4/20 $170.00 C $ $3.50 (+$3500)
9/4/20 – Expired 10 SQ 9/4/20 $170.00 C
Profit +$3500
Nvidia
For the last trade, it was another Covered Call without assignment. Again, I locked in good money but NVDA took a big drop. I’m not too worried about this one. Even if I have to wait a little while for it to recover I locked in a lot of money this week. I have plenty to play with!
9/1/20 – Sell to Open 10 NVDA 9/4/20 $560.00 C @ $5.00 (+$5000)
9/4/20 – Expired 10 NVDA 9/4/20 $560.00 C
Profit +$5000
Well, there you have it. My biggest week ever! You see a lot of trading gurus advertising to have you join their classes for a pretty penny. They talk about all their past trades. Here at Main Street beats Wall Street you see my trades as I make them. Not last year’s, not last month’s, as I make them! And it’s free. For the students who live close by, they even sit and learn with me. There are free things in life! Take advantage of it!
Total Weekly Gain +$118,296
You add this to my last 2 weeks and you have life changing money. At least enough money to make you feel a little more secure.
Next I have to start talking about the election. First we have to see how we recover from this week’s market bloodbath.
After my 35% drop caused by COVID-19 I put a 65% goal on my year. I won’t get into it now but I already doubled that. And we have 4 months to go. Thank you Apple and Tesla! When the market recovers from this week and we head into the election I’m gonna change my strategy. I want to hold onto these profits. I’ll be talking about it soon.
Enjoy the rest of your Labor Day Weekend!
Successful Trading,
Steve
The Options Coach