Results Week Ending 9/25/20
This ended up to be another very nice week. Not only was I assigned on 2000 shares of Peloton, but many of my holdings that were down, recovered.
Getting assigned on the 2000 shares of Peloton, and my stocks moving up will give me a large margin account to start the week. However, I don’t think I’ll take advantage of it. I still have stocks I’m holding that are ready to have Calls sold against them. These are: Square, Apple and Nvidia. If Monday is a good day these stocks can bring me in some nice premiums. To help with next week’s income I already sold Covered Calls on PayPal and Micron. And I have a Naked Call sold on Peloton. With these 3 positions I brought in $7000 in premiums. That’s a good start to next week!
The reason I say I’m not gonna take advantage of my available margin power is, I think I’ll make enough with the positions I’m holding. Also, I’m very conscious of the upcoming election. I’m having such a great year I would like to be out of most positions going into the election. Remember, “Pigs Get Slaughtered.” With about 5 week to the election, as I get assigned on my positions, I would like to keep that cash on the sidelines for November 4th.
Most readers know, because of my COVID-19 35% drop, my goal for the year was 65%. I’ll be writing about my year’s progress right after the election, but because of my success with the Apple and Tesla splits, I am well over 100% on the year. Over by a lot! I see no reason to try and figure how the election will affect the market. I’d be happy with my year if I didn’t make another trade until January. However, I am a trader, and I will be making more trades, but I see no reason to get greedy and play the craziest election in the history of this country. I feel many people in this country have completely lost their minds, and I don’t want to try to figure out how they will play the market. I will try to be out of as many of my positions as I can.
Let’s take a look at the trades that gave me another good week.
I bought a 1 contract LEAPS on 8/3/20. I didn’t like the way it was moving, plus trying to get out of positions for the election, I sold for a $200 profit.
8/3/20 – Buy to Open 1 PINS 1/21/22 $35.00 C @ $11.00
9/22/20 – Sell to Close 1 PINS 1/21/22 $35.00 C @ $2.00
Profit +$200
Petoton
I sold a 10 contract Naked Call for a $1200 premium. An hour later the stock went down so I did a “Buy to Close” to cash in for a $600 profit.
9/23/20 – Sell to Open 10 PTON 10/2/20 $114.00 C @ $1.20 (+$1200)
9/23/20 – Buy to Close 10 PTON 10/2/20 $114.00C @ 60¢ (-$600)
Profit +$600
PayPal
This was a 10 contract Covered Call where I was not assigned.
9/21/20 – Sell to Open 10 PYPL 9/25/20 $190.00 C @ $1.20 (+$1200)
9/25/20 – Expired 10 PYPL 9/25/20 $190.00 C
Profit +$1200
Square
Another 10 contract Covered Call with no assignment.
9/22/20 – Sell to Open 10 SQ 9/25/20 $165.00 @ 80¢ (+$800)
9/25/20 – Expired 10 SQ 9/25/20 $165.00 C
Profit +$800
Micron
Covered Call without assignment.
9/23/20 – Sell to Open 10 MU 9/25/20 $52.00 C @ 50¢ (+$500)
9/25/20 – Expired 10 MU 9/25/20 $52.00 C
Profit +$500
Peloton Roll-Out
This was the big group of trades that gave me such a big week. It started as a simple Naked Call that went bad. I made some moves that made a bad situation a big winner. I wrote a report on all the trades yesterday. To understand all the trades please take a look at that post.
My Peloton Roll-Out Gives Me a Huge Week
8/26/20 – Sell to Open 10 PTON 9/4/20 $72.00 C @ $1.30 (+$1300) Closed
9/4/20 – Buy to Close 10 PTON 9/4/20 $72.00 C @ $12.00 (-$12,000) Closed
9/1/20 – Sell to Open 10 PTON 9/25/20 $85.00 C @ $8.50 (+$8500) Closed
9/4/20 – Sell to Open 10 PTON 9/25/20 $95.00 C @ $6.80 (+6800) Closed
Profit +$4600
9/1/20 – Buy 1000 Shares PTON @ $81.90
9/25/20 – Assigned 1000 Shares PTON @ $85.00
Profit +$3100
9/9/20 – Buy 1000 Shares PTON @ $88.00
9/25/20 – Assigned 1000 Shares PTON @ $95.00
Profit +$7000
I would have had a nice week but the Peloton trades made it very nice!
Total Weekly Gain +$18,000
Any question, send me an email.
Enjoy the rest of the weekend!
Successful trading,
Steve
The Options Coach