Results Week Ending 10/9/20
I received a few emails from readers letting me know their results of trades. They made me very happy. 1 or 2 asked me how they could keep their stock profit when a stock runs up above their Strike Price when doing Covered Calls. Others were letting me know how appreciative they are for learning my Covered Call strategy, and not worrying about Opportunity Lost. I love all the emails. Some emails I even took excerpts and put on my “Blog Blurbs” page. Thank you for your emails! Just remember, you cannot keep the stock profit above your Strike Price and the premium. This is why picking your Strike Price and Expiration Date is so important. My strategy is to get assigned, keep the profit I sign up for, and move on. I do not worry about Opportunity Lost! You will see this strategy at work with this week’s results. I was assigned on 1000 shares of Square and 3000 shares of Peloton. These positions help give me one of my biggest weeks ever.
New traders, do not get discouraged by my huge results. Get inspired! The reason my results are so big is because my account is growing at a crazy rate. My strategies have been working and this is something to get excited about. I post all my trades! As my account grows my trades get larger. I’m making trades with 10 contracts. You can make trades with 1 contract and make the same Rate of Return. As your account grows your trades will get bigger. Keep studying, keep working with what you have in your account. It will grow! Slow and Steady, Steady and Slow!
Let’s take a look at this week’s trades and results. I’m very happy!
Best Buy
Back on 8/25 I bought 2 contracts of Best Buy (BBY) LEAPS. The premium was $19.75. The position cost me $3950. Most Grasshoppers have that. If not you could do 1 contract. I was in the position about 6 weeks and made $400. This is a return of 10.1%. This is a great Grasshopper trade!
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
Nvidia
This is not a Grasshopper trade. I own 1000 shares of NVDA and sold a 10 contract Covered Call. No assignment! I keep the premium of $5200.
9/28/20 – Sell to Open 10 NVDA 10/9/20 $557.50 C @$5.20 (+$5200)
10/9/20 – Expired 10 NVDA 10/9/20 $557.50 C
Profit +$5200
Square
This was a 10 contract Covered Call with assignment. Check out the profit. $6000 on the stock sale and a $6500 premium. The stock closed at $187. I was assigned at $175. Huge Opportunity Lost! I DON’T CARE!
9/1/20 – Buy 1000 Shares SQ @ $169.00
10/9/20 – Assigned 1000 Shares SQ @ 175.00
Profit +$6000
10/5/20 – Sell to Open 10 SQ 10/9/20 $175.00 C @ $6.50 (+$6500)
10/9/20 – Expired 10 SQ 10/9/20 $175.00 C
Profit +$6500
Apple
This was an Apple Covered Call without assignment. Hopefully I’ll sell another Call this week.
10/5/20 – Sell to Open 10 AAPL 10/9/20 $118.75 C @ 75¢ (+$750)
10/9/20 – Expired 10 AAPL 10/9/20 $118.75 C
Profit +$750
Square
Along with the Covered Call above I sold a 10 contract Naked Call. With the stock at $180 I sold a $190 Call. The stock never got to $190. Absolutely no investment, I keep the $1600 premium.
10/5/20 – Sell to Open 10 SQ 10/9/20 $190.00 C @ $1.60 (+$1600)
10/9/20 – Expired 10 SQ 10/9/20 $190.00 C
Profit +$1600
Draftkings
Last week I sold a 10 contract Covered Call. The stock ran up above my Strike Price so I did a Roll-Out. This Roll-Out turned a losing situation into a winner. Not a huge gain but I didn’t lose money!
Any questions on this strategy send me an email.
Draftkings Roll-Out
10/1/20 – Sell to Open 10 DKNG 10/2/20 $60.00 C @ $1.50 (+$1500)
10/2/20 – Buy to Close 10 DKNG 10/2/20 $60 C @ $3.60 (-$3600)
10/2/20 – Sell to Open 10 DKNG 10/9/20 $65.00 C @ $2.40 (+$2400)
10/9/20 – Expired 10 DKNG 10/9/20 $65.00 C
Profit +$300
Peloton
This was my Peloton Triple Play Hedge. The stock kept going up so I kept covering the Naked Calls with the buying of the stock. You can read about all the trades at My PTON Triple Play Hedge.
Making money being an options trader is not always a smooth highway. Once in a while you run into road hazards, potholes and detours. You must learn how to make adjustment trades to get you back on the smooth road. This is all part of being an option trader. The adjustment trades I made with this Triple Play Hedge (TPH) worked great and gave me a huge profit. The adjustment trades actually turned my TPH into (3) 10 contract Covered Calls and I was assigned on all.
10/2/20 – Buy 1000 Shares PTON @ $107.75
10/9/20 – Assigned 1000 Shares PTON @ 109.00
Profit +$1250
10/5/20 – Sell to Open 10 PTON 10/9/20 $109.00 C @ $3.50 (+$3500)
10/9/20 – Expired 10 PTON 10/9/20 $109.00 C
Profit +$3500
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10/7/20 – Buy 1000 Shares PTON @ $113.75
10/9/20 – Assigned 1000 Shares PTON @ $118.00
Profit +$4250
10/5/20 – Sell to Open 10 PTON 10/9/20 $118.00 C @ 80¢ (+$800)
10/9/20 – Expired 10 PTON 10/9/20 $118.00 C
Profit +$800
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10/8/20 – Buy 1000 Shares PTON @ $119.00
10/9/20 – Assigned 1000 Shares PTON @ $120.00
Profit +$1000
10/6/20 – Sell to Open 10 PTON 10/9/20 $120.00 C @ 55¢ (+$550)
10/9/20 – Expired 10 PTON 10/9/20 $120.00 C
Profit +$550
Any questions on this series of trades send me an email.
Total Weekly Gain $32,100
Next week will be much smaller. I was assigned on my Square and Peloton positions and I’ll probably leave that money idle until after the election. If I do put some to work it will be with Naked Calls. I’m still holding shares with Apple, Micron, Nvidia and Draftkings. These position give me plenty to work with to have a nice week, but it won’t be like this week. Let’s watch to see what I can do, and let’s watch to see what I can get assigned on next week. My goal is to be out of all stock for the election.
After the election I’ll be writing an article on how my year is going. Well, we know how it’s going, but I’ll be writing on how well it’s going. I really want to take my gains into next year. As a little teaser; my goal with COVID was 65%. At this point if I did that it would be a huge disappointment. Thanks to the Apple and Tesla splits I’m well over 150%.
Enjoy the rest of the weekend!
Successful trading,
Steve
The Options Coach