A Lot to Report!
I had an extremely busy day, and quite stressful! Appointments, phone calls, business meetings, trading, I didn’t stop all day long.
About a month ago I bought a new, professional espresso machine. Today was “National Espresso Day” lol. go figure! There’s a holiday for everything. Well, before the end of the trading, to complicate my day, my house was invaded by friends for espresso lol.
At this point I had a bunch of trades placed but not filled. While we were drinking espresso my orders started getting filled. I did not have time to report the trades so I’m doing it now. I already reported 3 trades earlier, and here are 4 more that were filled during my coffee hour.
This has been a crazy November. It could end up being the biggest November DOW move since the 1980’s. How much more can it go? With this monster move I decided to sell some Naked Calls thinking it might stop. The Naked Call trades below are all electric car makers. They are all a bit Out-of-the-Money for a little comfort but can be In-the-Money very easily. I will watch them closely and I’m ready to cover at any time.
Sell to Open 2 TSLA 11/27/20 $530.00 C @ $10.00 (+$2000)
Sell to Open 10 NKLA 11/27/20 $31.00 C @ 65¢ (+$650)
Sell to Open 10 NIO 11/27/20 $60.00 C @ $1.00 (+$1000)
The electric car makers are all hot. I hope they start cooling off tomorrow morning. If not I’ll be covering these Calls. But in the meantime all these trades get a Risk Factor 5.
I own 400 shares of Zoom (ZM). I bought the shares at different times and my average cost is $508 per share. The stock is down from that so I’m bringing in what I can. I sold 4 ZM 11/27/20 $510 Calls for a premium of $1 for $400. I didn’t want to go to the Strike of $510 but this stock can be a big mover any time. If I picked a lower Strike Price for a better premium there’s a chance of getting assigned at a price lower than my buy-in price making to lose money on the stock sale.
Sell to Open 4 ZM 11/27/20 $510.00 C @ $1.00 (+$400)
I’ll take the $400 while I wait for the stock to rebound. This is a Covered Call on previously owned stock so the trade gets a Risk Factor 1.
Successful trading,
Steve
The Options Coach