Results Week Ending 11/6/20
When it comes to the market, the last two weeks were the complete opposite. As I look at the candlestick chart from, Monday Oct 23rd to Friday Nov 6th, two complete weeks, the candlestick chart is a perfect “V” shape.
Let me talk about a few observations. Let’s start with the left side, or the start of the “V.” The DOW’s high of Monday, Oct 23rd was 28,436. If we go to the right side of the “V” the high for Friday, Nov 6th is 28,431. A difference of 5 points! I don’t know why I find this so incredible, but I do.
The low point of the “V” was Friday, Oct 30th, the end of the 1st week, the Dow’s low was 26,143. The left side of the “V” is almost the exact opposite at the right. We’re talking 5 points! Talk about a “V” shaped recovery! The left side of the “V” came down 2000 points and the right side went up 2000 points.
The low of the opening day of the “V” was also very close to the low of the closing day of the “V.”
With the lack of assignments lately I have been holding a lot of stock. You can imagine the swing my account made the last two weeks with this 4000 point swing in the DOW.
Here’s another observation you might find unbelievable. With this perfect “V” swing in the market, 2000 points each week in opposite directions, I made the exact amount of money! That’s right, to the penny! As mentioned, of course my account made big swings, but the amount of money I made, I’m talking about locked in my mattress, is exactly the same. Take a look at my page “Trade History 2020.” Look at week’s ending 10/30/20 and 11/6/20. Both last week, with the market down 2000 points, and this week, with the market up 2000 points, I made the same, $14,800. Trades were completely different in the amount of trades, and size of trades. Also this week I was assigned on a lot of positions. Both weeks $14,800! This makes me very happy! This lets me know that it’s possible, with the correct management of a margin account, I can make money if the market goes up or down.
When looking at this week’s trades you will see I was assigned on shares of Nvidia, Peloton, Square and Apple. This leaves me with a huge margin Buying Power account. What will I do? Who knows? Only time will tell.
One thing I want to say about this week’s assignments using Nvidia as an example. I bought Nvidia back on 9/1. I’ve been selling Calls every week without assignment. With Nvidia making big moves from $550 down to $500 and back again, without assignment, it’s hard to see the good your big premiums are doing to your account. If I bring in a $10,000 premium but the stock goes down $20,000 it’s a little hard to celebrate. The last two months I brought in about $40,000 in premiums with Nvidia. This week, finally getting assigned at a Strike Price above my buy-in price, meaning I’m out of the stock making money. I can finally take a look at the $40,000 in premiums and celebrate. After two months I’m completely out of Nvidia and I can stuff the 40 grand into my mattress with total confidence I’m not giving any back with a loss on the stock. This series of trades is over! This is what makes me different from other traders. I like assignments! Take my stock, I don’t want it!
There’s a lot of trades this week, let’s take a look.
Nextera Energy
I bought 2 contracts of this option on the split announcement. Sold this week.
Post 4:1 Split “Sell to Close”
9/15/20 – Buy to Open 2 NEE 1/15/21 $300.00 C @ $17.90
11/3/20 – Sell to Close 8 NEE 1/15/20 $75.00 C @ $5.10
Profit +$500
Zoom
Sold some Calls and got out the same day.
11/4/20 – Sell to Open 3 ZM 11/6/20 $520.00 C @ $1.50 (+$450)
11/4/20 – Buy to Close 2 ZM 11/6/20 $520.00 C @ 80¢ (-$240)
Profit $+210
Nvidia
After 2 months I was assigned on my 1000 shares of Nvidia as a result of this Covered Call.
Assigned Covered Call
9/1/20 – Buy 1000 Shares NVDA @ $553.85
11/6/20 – Assigned 1000 Shares MVDA @ $555.00
Profit +$2150
11/3/20 – Sell to Open 10 NVDA 11/6/20 $555.00 C @ $1.40 (+$1400)
11/6/20 – Expired 10 NVDA 11/6/20 $555.00 C
Profit +$1400
Apple
After 6 week I was assigned on this Apple Covered Call.
Assigned Covered Call
9/15/20 – Buy 1000 Shares AAPL @ $117.50
11/6/20 – Assigned 1000 Shares AAPL @ $118.00
Profit +$500
11/4/20 – Sell to Open 10 AAPL 11/6/20 $118.00 C @ 25¢ (+$250)
11/6/20 – Expired 10 AAPL 11/6/20 $118.00 C
Profit +$250
Peloton
This Covered Call expired without assignment.
11/4/20 – Sell to Open 10 PTON 11/6/20 $139.00 C @ 60¢ (+$600)
11/6/20 – Expired 10 PTON 11/6/20 $139.00 C
Profit +$600
Zoom
Covered Call without assignment.
11/4/20 – Sell to Open 4 ZM 11/6/20 $510.00 C @ $1.60 (+$640)
11/6/20 – Expired 4 ZM 11/6/20 $510.00 C
Profit +$640
Peloton
Another Covered Call without assignment.
11/4/20 – Sell to Open 10 PTON 11/6/20 $134.00 C @ $1.05 (+$1050)
11/6/20 – Expired 10 PTON 11/6/20 $134.00 C
Profit +$1050
Peloton
With earnings coming I did a 2 day 500 shares/5 contract Buy-Write. With COVID I felt Peloton would have a good report. This was a great 2 day, $3500 trade.
Assigned Covered Call
11/5/20 – Buy 500 Shares PTON @ $119.00
11/6/20 – Assigned 500 Shares PTON @ $120.00
Profit +$500
11/5/20 – Sell to Open 5 PTON 11/6/20 $120.00 C @ $6.00 (+$3000)
11/6/20 – Expired 5 PTON 11/6/20 $120.00 C
Profit +$3000
Square
After great earnings I made a same day trade. The morning of Expiration Day I bought 1000 shares of Square at $184 and sold a 10 contract $185 Call for the great premium of $3000. I felt very strongly I would have an Opportunity Lost but I got into this trade for the premium and the $1000 stock gain. The market closed 6 hours later and as expected I was assigned.
Assigned Covered Call
11/6/20 – Buy 1000 Shares SQ Q $184.00
11/6/20 – Assigned 1000 Shares SQ @ $185.00
Profit +$1000
11/6/20 – Sell to Open 10 SQ 11/6/20 $185.00 C @ $3.00 (+$3000)
11/6/20 – Expired 10 SQ 11/6/20 $185.00 C
Profit +$3000
Total Weekly Gain +$14,800
This week was the same as last week but I feel much better this week. I was assigned on 4 positions. I’m ready for Monday morning! Let’s see how it goes.
Have a great weekend! The weather is beautiful here in NYC.
Successful trading,
Steve
The Options Coach