Trades With SQ, AMD & NVDA
On Monday, With Square at $206 I sold 10 Contracts of the $215 Calls for a premium of $1.80. These Calls are Naked and will expire Friday. With the shortened trading week I felt confident this was a safe position.
Today the stock is on a huge run. It was running high and it was moving fast! I decided to put in a buy order for the 1000 shares at $212. I was filled on the order. The stock continued up to $213 then backed off a little. It went up and down a few times and seemed to hit resistance at $213. With the stock coming down from the $213 area I decided to sell the stock and go Naked again. I sold at $212.90 locking in a $900 profit with a day trade.
Buy 1000 Shares SQ @ $212.00
Sell 1000 Shares SQ @ $212.90
Profit +$900
This might have been a crazy move but after looking at the charts it looked like it would stay below $213 and my Strike Price is $215. Remember, the market is closed tomorrow and only a half day on Friday. I looked at the last few Fridays after Thanksgiving and they were down days with low volume. It is Black Friday so I guess more people shop than trade! As I write the stock is at $211.45. If Square stays below my Strike of $215 through Friday this Call will expire. And locking in an additional $900 will make this a nice trade decision.
On 11/5 I bought 10 contracts of the Advanced Micro Devices (AMD) 6/18/21 Calls. I spent $13.25 for a total of $13,250. In my post Bought AMD Calls, I mentioned I wanted to be in the position for a week or 2, and make a dollar or 2. Well, I was in the position for 20 days, and I made $1500.
11/5/20 – Buy to Open 10 AMD 6/18/21 $82.50 C @ $13.25
11/25/20 – Sell to Close 10 AMD 6/18/21 $82.50 C @ $14.75
Profit +$1500
I ended up staying a little longer and making a little less, but that’s OK. Making the $1500 on the $13,250 investment is an 11.3% return. I’m happy!
If you look at the stock’s high of the day it was $87.84. I was really caught up watching all my Naked Calls, I lost track of AMD. If I was on top of it I would have been able to sell this position for an additional 50¢ to make the $2000. This is the problem with watching too many positions. One can get away. Oh Well, I’m still happy!
On 11/18 I bought 100 shares of Nvidia (NVDA) at $536.75 and another 200 shares on 11/20 at $538. I now own 300 shares at an average of $537.58.
Today the stock is up but still down about $10 from my buy-in price. With only the remainder of today and a half day Friday I decided to sell a 3 contract Call to bring in a few bucks. I sold 3 NVDA 11/27/20 $540 Calls for a premium of $1 for $300. If the stock had a crazy day on Friday and I get assigned I’ll keep the premium and make money on the stock. I said, “what the hell, I might as well grab the $300.” It will pay for my Thanksgiving meal lol.
Sell to Open 3 NVDA 11/27/20 $540.00 C @ $1.00 (+$300)
With all my Naked Calls expiring Friday, I’m looking pretty good! Except for Tesla. I sold 2 $530 Naked Call when the stock was around $515. The freaked thing is up to $564! This will be a problem but I think I’ll be able to do a Roll-out and end up making money. The stock will definitely be above my strike Price of $530 at the close on Friday. Watch for my adjustment trade.
Any questions, send me an email.
Successful trading,
Steve
The Options Coach