Results Week Ending 10/30/20
I will start with a big Happy Halloween to everyone. Be careful out there during these crazy times. And keep the kids close!
October, what a tough month! The worst since March. For me, I actually did pretty well except for this week, the last few days my account got hammered!
My election strategy didn’t work as well as I wanted. I remain in more stock than I want because I didn’t get assigned on some of my bigger positions. The fact is my account is down this week because some of these big positions came down with everything else, but all month I continued to bring in big premiums, and this week is no exception.
My account grew exponentially this year. This lets me own a large amount of stock and still have a large margin account available. When working on margin it’s very important to learn how to manage your account. The amount you have invested, and the amount not. As you have more invested you should have a larger amount available in your margin reserve. This will keep your margin interest low, plus, if stocks fluctuate down a margin call will be avoided.
This week my larger holdings did fluctuate down, Apple, Nvidia, and Peloton. I also own 300 shares of Zoom, along with lesser valued positions. As I said my account did take a hit this week, but I still own the positions and will continue to sell Calls. Trading is not always a smooth highway! Many times you hit road hazards and detours. Getting through these areas successfully is what makes you a real trader.
Even though this was a bad week for the market, let’s take a look at what I was able to get into my mattress.
Peloton
I sold (2) 10 contract Calls with Peloton to expire next week. With the stocks moving down I was able to do a “Buy to Close” on the 2 positions to lock in some nice money. I did this because I still have a week to sell another Call on each if the market rebounds a little. Or at least the COVID stocks.
10/28/30 – Sell to Open 10 PTON 11/6/20 $135.00 C @ $5.00 (+$5000)
10/29/20 – Buy to Close 10 PTON 11/6/20 $135.00 C @ $2.75 (-$2750)
Profit +$2250
10/28/20 – Sell to Open 10 PTON 11/6/20 $140.00 C @ $3.50 (+$3500)
10/29/20 – Buy to Close 10 PTON 11/6/20 $140.00 C @ $1.90 (-$1900)
Profit +$1600
Snap
With Snap coming out with a better earnings report than normal it had a big pop. I didn’t think it would hold the gains so I sold a Make Call. It worked out well. It expired and I keep the premium.
10/26/20 – Sell to Open 10 SNAP 10/30/20 $46.00 C @ 80¢ (+$800)
10/30/20 – Expired 10 SNAP 10/30/20 $46.00 C
Profit +$800
Square
Another Naked Call that worked nicely. A nice return on NO investment.
10/28/20 – Sell to Open 10 SQ 10/30/20 $177.50 C @ 65¢ (+$650)
10/30/20 – Expired 10 SQ 10/30/20 $177.50 C
Profit +$650
Zoom
Covered Call without assignment.
10/27/20 – Sell to Open 2 ZM 10/30/20 $522.50 C @ $15.00 (+$3000)
10/30/20 – Expired 2 ZM 10/30/20 $522.50 C
Profit +$3000
Nvidia
Covered Call without assignment.
10/26/20 – Sell to Open 10 NVDA 10/30/20 $555.00 C @ $6.50 (+$6500)
10/30/20 – Expired 10 NVDA 10/30/20 $555.00 C
Profit +$6500
Total Weekly Gain +$14,800
I hope everyone has a great weekend, and Halloween. But more importantly the election is upon us. If you didn’t already make up your mind, or vote, take time this weekend to listen to the candidates. Listen to what they say. Use your common sense to decide what are lies and what are not. This may be the most important election day of your life. Make sure you vote and pick the candidate you think will give you the America you want to live in.
God bless America!
Successful trading,
Steve
The Options Coach