Results Week Ending 11/27/20
I hope everyone is enjoying their Thanksgiving Day weekend. This was different than any other year, but here at my home we did the best we could and had a great day.
I’m a little late for this week ending report. My normal procedure is at the close of the market on Friday, I make all my adjustments on Main Street beats Wall Street. Both on the “Active Trades/Current Position” page and the “Trade History 2020” page, which I did on Friday at 4pm. Then on Saturday morning I look at my account, confirm all assignments, make sure all adjustments have been made to my margin account as a result of positions expiring, and I write my Week Ending Results.
This Saturday’s routine was interrupted by something I noticed on my account. One of my large positions that closed In-the-Money was only partially assigned.
The position involved 4000 shares of Palantir (PLTR). I own the shares at $18.47 and sold a $19 Call. The stock closed at $27.66. On Friday, when I made my adjustments on the pages of Main Street beats Wall Street, I listed this position as being assigned, because that’s what would normally happen. When I opened my computer on Saturday morning my account indicated that I was assigned on 1700 shares and not on the balance of 2300 shares.
You can look at any website. They all say, ‘if a Short option closes .01¢ In-the-Money it will get assigned.’ My option closed $8.66 In-the-Money and 2300 of the 4000 shares are still in my account. Not only that, my margin account has been adjusted and my account change for Saturday is to the tune of +$20,000. I called my broker but the weekend people were not very helpful.
Today is Sunday and the shares are still in my account. This is crazy! In today’s world, and the power of computers, what is going on? Some say I have to wait until Monday morning to get confirmation. If the shares are still in my account on Monday morning some trader really goofed up and the 20 grand stays in my account.
Is this a possibility? Is it possible that some traders didn’t realize the market closed at 1pm on Friday. Maybe they felt they had until 4pm to close out position or exercise with an assignment notice. Something like being late to work after daylight savings time clock adjustment.
I guess whoever gets to keep the 2300 shares will not be confirmed until Monday morning.
In the meantime I have this position as being completely assigned on my “Trade History 2020” page. Please take a look. I’ll have it highlighted until confirmation on Monday morning.
Here’s the Covered Call below:
Palantir
If all shares were assigned I make $2120 on the stock sale, and keep the $4000 premium.
11/20/20 – Buy 4000 Shares PLTR @ $18.47
11/27/20 – Assigned 4000 Shares PLTR @ $19.00
Profit +$2120
11/23/20 – Sell to Open 40 PLTR 11/27/20 $19.00 C @ $1.00 (+$4000)
11/27/20 – Expired 40 PLTR 11/27/20 $19.00 C
Profit +$4000
I will write about this first thing tomorrow morning. And I’ll finish up the weekly results. If all shares are assigned my weekly total gain is below. If it turns out I’m only assigned on 1700 shares my locked-in profit for the stock sale will be lowered to $901 because I’ll still own the other 2300 shares. My weekly gain will be lowered by $1219 but my account will be up 20K. Either way it was a great week!
If it turns out I still own the 2300 shares I will either sell them Monday morning or sell another Call. It’s according to the market sentiment. There’s a lot going on in the world. If possible, according to the way the stock opens, I might lock in the profit. Time will answer all the questions!
Either way this was another great week!
Total Weekly Gain +$17,670
Being a Christian man this Palantir situation leaves me with mixed emotions. On one hand it would be a huge gain in my account. On the other, I think of a young trader with a smaller account, who made a great call picking Palantir to go up with the buying of a Call option and not reaping the benefit. Since I love to help young people learn, this would be very sad. I will revisit this with more thoughts once there is confirmation on the outcome. I also have to write about a Tesla Roll-out and my position with Micron. Watch for tomorrow’s post.
Please go to Trade History 2020 to see all trades of the week.
Enjoy the rest of your Thanksgiving weekend.
Successful trading,
Steve
The Options Coach