Bought 100 Shares of 3D Systems (DDD) at $35 and sold 1 contract of the DDD6/25/21 $36 Calls. I received a premium of $1.75 for a return of 5%.
Buy 100 Shares DDD @ $35.00
Sell to Open 1 DDD 6/25/21 $36.00 C @ $1.75 (+$175)
Did you read my post on DDD yesterday? If not, read it now, Bought More 3D Systems.
I wrote that I bought 300 more shares at $28.58. Other than the 100 shares I just bought for the Grasshopper Trade above, I now own 500 shares, the 200 shares I previously owned and the 300 I bought yesterday. I own 500 shares at an average of $29.95.
When you read Bought More 3D Systems you will see I didn’t do my normal thing and sell 5 Calls. I decided to wait because of what I saw in the candlestick chart. I had a strong feeling that the stock would move up so I waited to sell my Calls. Today as I write the stock is up 27%.
With the stock up well over $5 I decided to sell the Call. I sold 5 DDD 6/25/21 $36.50 Calls for a premium of $1.10.
Sell to Open 5 DDD 6/25/21 $36.50 C @ $1.10 (+$550)
I’m very happy with this $1.10, which is 3.8%, but the stock continues to move up. In fact, as I write I’m already In-the-Money. lol. This is crazy!
How important was it to do some technical Analysis? It doesn’t happen very often that you see something so clear, but yesterday I did.
The stock continues to fly as I write.
Another stock I wanted to talk about is Nvidia. You probably know they announced a 4:1 split. I love splitting stocks. I did great with the Apple and Tesla splits last year. A few weeks ago I bought 1 LEAPS option on NVDA which I sold last week with a $3000 profit. This week I bought another option. With the stock at $723 I bought 1 NVDA 10/15/21 $720 Call. This isn’t a LEAPS but it’s longer term than my options selling strategy.
6/21/21 – Buy to Open 1 NVDA 10/15/21 $720.00 C @ $65.00
I bought this position yesterday and it’s already up over $1500. I’ll be buying options on this stock until the split. With our new system I don’t post Master Trades but I’ll try to post the buying of the NVDA options. The last time I’ll buy will be about 2 or 3 day before the split. After the split I’ll have 4 options for every 1 I buy. Then I’ll sell a day or 2 after the split. The split will happen on July 19th after the close.
Any questions on anything I wrote about today send me an email.
Successful trading,
Steve
The Options Coach