I bought 1000 shares of Weight Watchers (WTW) on 10/23/17 for $45.50 per share. I sold Calls 2 weeks in a row and brought in nice premiums, but wasn’t assigned. Yesterday I sold another Call with earnings due out at the end of the day. Because of this report due out I received a crazy $3 premium for a $46 Strike Price Call. The earnings were great and the stock jumped $5 at the open. I decided to do a Buy to Close on the option and sell the stock with a nice profit. The main reason I closed the position before expiration is to free up money to get into another position before the week is out. Below are the orders getting out of the stock and the Call. I took a lose on the option to lock in a larger profit on the stock sale.
10/23/17 – Buy 1000 Shares WTW @ $45.50
11/7/17 – Sell 1000 Shares WTW @ $50.10
Profit +$4600
11/6/17 – Sell to Open 10 WTW 11/11/17 $46.00 C @ $3.00 (+$3000)
11/7/17 – Buy to Close 10 WTW 11/11/17 $46.00 C @ $4.60 (-$4600)
Lose -$1600
Total Profit +$3000
If I held this position until expiration this Friday, I would have made 50¢ ($500) on the stock, and I would have kept the premium of $3000, for a total of $3500. Getting out early I’m making $500 less but I think I’ll be able to make more with the money I freed up.
Also, Yesterday I bought 1000 shares of Micron (MU) at $43. with the stock up 80¢ today I decided to sell for a 1 day profit of $800. I know I’ll be getting back into MU but I didn’t like the way the NASDAQ looked. If it pulls back to $43 I might jump back in. The life of a swing trader!
Steve
The Options Coach
I bought 1000 shared of NVDA at $209.76 with earning coming Thursday night.
Stock is up 1% but a $220 Weekly CC has a premium of $4.35. Could I live with it if the stock was ripped away from me at $220 ?
I think so.
I’m sure you could, but could you handle it if the stock drops to $200. You must trade according to your risk tolerance. Good luck! I hope NVDA comes out with great earnings for you. It could be a nice trade.
Well I tried to play hard to get, put in a $4.75 CC Sell for $220. No takers so at the end of the day I got $4.45
Now I wait.
NVDA headed south yesterday in the AM. The day before I sold Friday CC for $4.45. I bought them back yesterday morning for $3.35.
At the end of the day yesterday I sold Nov $220 CC for $5.05.
NVDA (and just about everything else) went south this morning. I bought back the Nov 17 CC for $3.30.
So I have been able to reap a little reward out of these downturns.
Hoping NVDA will swing up again this afternoon, would like to sell another Friday CC Before tonight’s earnings call.
Nice job locking in profit! NVDA is a great stock, it will be back up to where you bought in. Good luck!
Ya, I think I am the only person on the planet who has a net loss on NVDA this year.
Bought some early this year, sold at a loss and didn’t get back into it till recently. Got gun shy. WTW, is my other bugaboo stock.
Watching the Master work through these emails has got me in the rhythm to make $$$ regardless of direction.
Thank You
“Master,” WOW! lol
Am I seeing things….
NVDA is at $203, Friday $205 CC pays $7. MM estimates earnings stock price swing +/- $12 on earning announcement this evening.
Jump all over that ? Tempting…. given my recent CC wins on NVDA.
I am going to watch the stock price closer to the bell.
Still waiting for the NVDA earnings call but the stock price did recover quite a bit this afternoon as hoped.
I settled on selling the $210 Friday CC for $5.50. I hung the order out there when it was selling for $5.05 but the order was filled while I was on a conference call for my day job.
Now sit and wait.
Looking good Dick! NVDA is running nice after market. I hope you end up stuffing your mattress a bit.
Ya, I am in a can’t lose situation it appears. Three wining trades on one stock in 4 days is a personal record.
I stumbled into this opportunity but the Main Street Beats emails got my juices flowing.
Let’s see if it gets Called away from me EOD tomorrow.
It’s got me analyzing opportunities for Put Spreads on weekly NVDA Options.
I have never actually executed an Option Spread Trade but there has to be a first time for everything.
Question.
I bought mu at 35.945
I was wanted to see how leaps worked so I sold a 36 call leap for 2.77 strike for January 19th. Now if mu stay above 36 upon expiration I would have earn above 10 percent on my money. If I close the position. Is there a way out. And can you explain leaps clearly with exsample.
Yes Del but please send me your question to my email. The answer can get a little long and this section is not the best for long answers.