Sold 10 Apple Calls, Sold My 2 Contract Best Buy LEAPS
It’s turning out to be a busy Monday. I placed 4 trades and they are all filled. I was just filled on 2 trades with Apple (AAPL) and Best Buy (BBY).
I own 1300 shares of AAPL. 300 I use for my Gift Account and the other 1000 I trade for premiums.
The 1000 shares I own at $117.50 and I just sold a 10 contract 10/9/20 $118.75 Call for a premium of 75¢ ($750). With AAPL you don’t get the high Implied Volatility type of premiums, but I love the stock. It fits into my “Slow and Steady, Steady and Slow” philosophy.
Sell to Open 10 AAPL 10/9/20 $118.75 C @ 75¢ (+$750)
This trade gets a Risk Factor 1. All trades today, I feel, are good safe trades.
The 2nd trade I just made involves Best Buy. On 8/25 I bought a 2 contract LEAPS. I paid a $19.75 premium. I just sold this position for a premium of $21.75 for a profit of $2. This is a total profit of $400 and the money is in my mattress!
8/25/20 – Buy to Open 2 BBY 1/21/22 $110.00 C @ 19.75
10/5/20 – Sell to Open 2 BBY 1/21/22 $110.00 C @ $21.75
Profit +$400
For the 2 contracts with a premium of $19.75 I paid a total of $3950. I sold for $21.75 to bring in a total of $4350. This gives me the profit of $400. A profit of $400 on a $3950 investment is a Return on Investment (ROI) of 10% for a 5 week trade.
Successful trading,
Steve
The Options Coach