This week was an interesting one. I entered three trades with “Sell to Open” trades. I also exited all three with a “Buy to Close” order. This means I did not hold any trade to expiration. More now than ever, I am in the frame of mind of grabbing profit when I can or at least when it behoove me to do so. If I make a trade and bring in a $1000 premium, have a week until expiration and the value of that option drops down to $500 in a few hours, I will “Buy to Close” that trade and move on. That would be a $500 profit in a few hours. Why should I hold that position for another 5 days to get the other $500 when I could grab a quick $500 and look for another deal that interest me. Plus anything can happen to that stock in 5 days so I like to take profit off the table and put the money in the mattress. One of my trades involved Facebook (FB) and the other two was with Netflix (NFLX). The one with FB I sold 15 contracts with a $.90 premium ($1350) and bought out at $.20 ($300). I had a profit of $1050 so I grabbed it and sold another Call on FB a few days later. The two with NFLX I held each one for a few hours, one I profited $500 and the other $800. You can look at all of these trades on the page “Active trades/Current trades” or “Trade History.” These three trades brought in a total of $2350. For only three trades I feel this is a pretty good week. I am happy!
Total Weekly Profit $2350
Money in the mattress
This seemed pretty easy to do. If I did that every week the yearly total would be $122,200. Not bad!
If you have any questions on any of these trades send me an email at Coachsjc@gmail.com
Tomorrow is Monday and we start again. I do have a Call sold on FB expiring this coming Friday the 18th. Keep an eye on the market and “Main Street beats Wall Street” and lets make some money.
Steve
The Options Coach