Results Week Ending 12/4/20
The big story of this week is Palantir. Loyal readers know that I sold a 40 contract Covered Call that expired last Friday. The stock closed $8.66 In-the-Money but I was only assigned on 17 of the 40 contracts. Leaving 2300 shares of the stock, from the remaining 23 contracts, in my account. As I wrote a few times I’m amazed these shares were not assigned. Traders buy options to make money, well, someone left this money behind and it remained in my account. This deal is over! I already sold the shares and moved on. At some point this week I’ll be calling my broker to find out how this could happen and I’ll be writing a full report.
This 40 contract option is not the only reason Palantir is the big story of the week. Remember, this 40 contract Call expired last week, but I sold the 2300 shares (left behind) this week. In addition I also had a 20 contract Covered Call that expired this week with a $5600 premium, I was not assigned. And another 20 contract Naked Call that expired leaving me a $820 premium.
In total, Palantir trades alone gave me a locked-in gain of $22,339. I also had 6 or 7 other trades! These Palantir trades were a big part of this week’s gain but my total gain for the week was $36,890. This is freak’in insane!
I’ll be writing about the success I’ve had this year in a report I call my “11th Month Report.” I like to write about my year in the 1st week of December to talk about the last 11 months and my plan to finish out the year. I’ll also talk about a few bad positions I’m holding and what I plan on doing with them. Please watch for this report. I’ll have it out by the end of the weekend.
Below are the trades that gave me such a great week.
Palantir
When I was left with the 2300 shares of PLTR in my account the first ones I sold were these 300 shares. I sold these to leave me with the 2000 shares in my account.
11/20/20 – Buy 300 Shares PLTR @ $18.47
11/30/30 – Sell 300 Shares PLTR @ $26.00
Profit +$2259
Palantir
When I left the 2000 shares in my account I didn’t like the way the stock was moving so I sold the balance to lock-in the huge profit.
11/20/20 – Buy 2000 Shares PLTR @ $18.47
12/1/20 – Sell 2000 Shares PLTR @ $25.30
Profit +$13,660
Palantir
This was a separate 20 contract Covered Call I had with PLTR. I did not get assigned and still own the shares. I keep the $5600 premium.
11/27/20 – Sell to Open 20 PLTR 12/4/20 $29.00 C @ $2.80 (+$5600)
12/4/20 – Expired 20 PLTR 12/4/20 $29.00 C
Profit +$5600
Nikola
This was a 10 contract Covered Call. I was not assigned.
11/30/20 – Sell to Open 10 NKLA 12/4/20 $21.00 C @ $2.05 (+$2050)
12/4/20 – Expired 10 NKLA 12/4/20 $21.00 C
Profit +$2050
Nvidia
This was a 3 contract Covered Call. I was assigned. Made $726 on the stock sale and kept the $1875 premium.
11/20/20 – Buy 300 shares of NVDA @ $537.58
12/4/20 – Assigned 300 Shares NVDA @ $540.00
Profit +$726
11/30/20 – Sell to Open 3 NVDA 12/4/20 $540.00 C @ $6.25 (+$1875)
12/4/20 – Expired 3 NVDA 12/4/20 $540.00 C
Profit +$1875
Zoom
A 4 contract Covered Call. I was not assigned. This was a huge premium because I sold this Call the day they were reporting earnings.
11/30/20 – Sell to Open 4 ZM 12/4/20 $520.00 C @ $16.50 (+$6600)
12/4/20 – Expired 4 ZM 12/4/20 $520.00 C
Profit +$6600
Advanced Micro Devices
This started as a Naked Call. The stock started to move more than I thought it would so I bought the shares to cover the Call. The stock backed off and I wasn’t assigned. I already sold another Call to expire next week.
11/30/20 – Sell to Open 10 AMD 12/4/20 $96.00 C @ $1.10 (+$1100)
12/4/20 – Expired 10 AMD 12/4/20 $96.00 C
Profit +$1100
Workhorse
I bought 1000 shares at $21.80 and sold the $22 Call. The stock closed at $22.07 but dropped back to $21.82 in the after hours. Since the stock closed at $22.07 I should have been assigned but again I wasn’t. This will be explained right after I talk to my broker about the Palantir trade. I should have no problem selling another Call on Monday.
12/3/20 – Sell to Open 10 WKHS 12/4/20 $22.00 C @ 80¢ (+$800)
12/4/20 – Expired 10 WKHS 12/4/20 $22.00 C
Profit +$800
Palantir
This was the 20 contract Naked Call I spoke about. It expired Out-of-the-Money.
12/1/20 – Sell to Open 20 PLTR 12/4/20 $30.00 C @ 41¢ (+$820)
12/4/20 – Expired 20 PLTR 12/4/20 $30.00 C
Profit +$820
Micron
This is the 10 contract Put I sold that was part of the Covered Put. A Covered Put is the opposite of a Covered Call. You Short the stock and sell a Put. The Put expired and I keep the $1400 premium but my 1000 shares Short position with Micron is presenting a big problem. I’ll be writing about this in my “11th Month Report.” I’m still holding the position.
11/30/20 – Sell to Open 10 MU 12/4/20 $64.00 P @ $1.40 (+$1400)
12/4/20 – Expired 10 MU 12/4/20 $64.00 P
Profit +$1400
Total Weekly Gain +$36,890
Because of my Palantir shares not getting assigned I had one of my biggest weeks. This week was in my top 3 or 4 weeks ever.
Please watch for my “11th Month Report.”
Enjoy your weekend! Stay safe!
Successful trading,
Steve
The Options Coach