Hi Readers! I hope everyone had a great Father’s Day. I’m a little slow with this report this week because of Father’sDay. I had my family over my house to celebrate Father’s Day and my son’s birthday. Not only did we have a great Saturday BBQ but everyone stayed over. Everyone left a little while ago and now I’m getting my report done. I also procrastinated a little because I had a busy trading week last week so I guess I was afraid it could get a little lengthly.
I have a lot of trades to report so I’ll try to give the Cliff Notes version while getting my point across. I’ll start with Skechers (SKX).
Skechers
The SKX trade coming to an end was the second Call of my “Triple Ply Hedge.” Not only did the second leg expire but the shares I owned were assigned. Below are the orders of the stock buy and sell, and the orders for the selling of the Call and the expiration.
Buy 1000 Shares SKX @ $26.75
Assigned 1000 Shares SKX @ $27.50
Profit +$750
Sell to Open 10 SKX 6/16/17 $27.50 C @ 50¢ (+$500)
Expired 10 SKX 6/16/17 $27.50 C
Profit +$500
Advanced Micro Devices
For my next trade I did a “Buy-Write” on Advanced Micro Devices (AMD). The Call expired but I wasn’t assigned on the shares. I still own the 2000 shares.
Sell to Open 20 AMD 6/16/17 $12 C @ 25¢ (+$500)
Expired 20 AMD 6/16/17 C
Profit $500
Weight Watchers
On Friday I had the last leg of my Weight Watchers (WTW) “Triple Play Hedge” expire. In addition, making this a perfect “Triple Play Hedge,” the 2000 shares were assigned and this “Triple play Hedge” is history. I bought the shares at $26.75 and was assigned at $28. I made $1.25 on the sale of the shares. On the 2000 shares that’s $2500. Plus the the last Call expired to end the trade. Here are the orders for the shares and the Call.
Buy 2000 Shares WTW @ $26.75
Assigned 2000 Shares WTW @ $28
Profit +$2500
Sell to Open 20 WTW 6/16/17 $28 C @ 50¢ (+$1000)
Expired 20 WTW 6/16/17 $28 C
Profit +$1000
As you see the stock brought is $2500 plus the $1000 on the expiration of the Call. This was the last leg of the “Triple Play Hedge.” Last week and the week before that I had the 1st and 2nd legs expire for premiums $550 and $1200 respectively. If you add up all the premiums and the stock gain you will get $5250. This “Triple Play Hedge” strategy brought in $5250 in 17 days. That’s a 9.8% return. I love it!
Micron
Next is Micron (MU). The MU trade were also part of a “Triple Play Hedge.” Last week when I did this strategy with Micron I had the first 2 legs expiring the first week so I have 2 Calls to report. both Call expired and shares were not assigned. Here’s the orders:
Sell to Open 10 MU 6/16/17 $30 C @ $1.00 (+$1000)
Expired 10 MU 6/16/17 $30 C
Profit +$1000
Sell to Open 10 MU 6/16/17 $31 C @ 60¢ (+$600)
Expired 10 MU 6/16/17 $31 C
Profit +$600
I have one more Call left in this “Triple Play Hedge” which is a $31 Call that expires this coming Friday.
This was a very busy and very successful week. My “Triple Play Hedge” strategy is working nicely. If you have any question, please send me an email.
Weekly Total Gain +$6850
Keep studying and be careful!
Steve
The Options Coach