For someone not putting in the trading time because of a busy summer schedule, I had one fantastic week! This happens once in a while and it feels great. If you look at the amount of trades I completed it looks like it would have taken me hours every day, but it really didn’t. It’s just a few moves that worked out nicely, and the result is a $7510 week. All moves only involved 2 stocks, RH and Micron. Let’s take a look at the moves.
Below is a series of trades I made with RH. If you look at the dates 8/31/17 and 9/5/17 you will see I bought 500 shares of RH on each of those dates. If you look at the date 9/6/17 which is marked with (*). On that date I sold 10 contracts of the RH $53 Calls. At one point I had 1000 shares with 10 option contracts sold against them. Realizing that earnings were due out I decided to exit half of that position. I sold 500 shares with a $2300 profit and I did a “Buy to Close” on 5 of the contracts for a small profit of $100.
With earnings due I didn’t want to take a chance of a big drop with 1000 shares so I took the profit on the 500 shares and let the other 500 shares ride. It turns out that the earnings report was great and the stock went up $20, a little over 40%. The other 500 shares were assigned for a $1400 profit and I kept the premium of $1600. I had a bit of an Opportunity Lost but I cannot worry about that. I came out a big winner.
RH
8/31/17 – Buy 500 Shares RH @ $45.80
9/6/17 – Sold 500 Shares RH @ $50.40
Profit +$2300
*9/6/17 – Sell to Open 5 RH 9/8/17 $53 C @ 3.20 (+$1600)
9/6/17 – Buy to Close 5 RH 9/8/17 $53 C @ $3.00 (-$1500)
Profit +$100
9/5/17 – Buy 500 Shares RH @ $50.20
9/8/17 – Assigned 500 Shares RH @ $53.00
Profit +$1400
*9/6/17 – Sell to Open 5 RH 9/8/17 $53.00 C @ $3.20 (+$1600)
9/8/17 – Expired 5 RH 9/8/17 $53.00 C
Profit +$1600
Micron
My next set of trades involved Micron (MU). On 7/17/17 I bought 2000 shares. With good reports coming out and the stock down a little from where I bought these shares, on 8/16/17 I bought another 500 shares. On 8/28/17 I decided to sell 25 contracts of the $32 Calls for a nice premium. The stock went up and I was assigned on all 2500 shares. The result was some nice profits on all trades.
7/17/17 – Buy 2000 Shares MU @ $31.77
9/8/17 – Assigned 2000 Shares @ $32.00
Profit +$460
8/16/17 – Buy 500 Shares MU @ $30.70
9/8/17 – Assigned 500 Shares @ 32.00
Profit +$650
8/28/17 – Sell to Open 25 MU 9/8/17 $32.00 C @ 40¢ (+$1000)
9/8/17 – Expired 25 MU 9/8/17 $32.00 C
Profit +$1000
If I could have a week like this, every week, putting in a small amount of time I think this blog would take off.
Any questions on this weeks trades send me an email.
Total Weekly Gain +$7510
Enjoy the rest of your weekend. If you’re in florida my thoughts and prayers are with you.
Steve
The Options Coach