On 11/7/17 I bought 1000 shares of SNAP at $14. This purchase was a result of me selling a $14 PUT. When I entered that Put order the stock was in the area of $15. At the time I didn’t know that SNAP’s earnings were do out in a few days. Well, after the earnings announcement SNAP dropped to $12.50 and I had the 1000 shares put to me at $14. At this point I’m down $1.50 per share. I decided to hold the stock and watch what happens. Between 11/7, my purchase date, and today, the stock has been creeping up toward my purchase price. In fact, last week with the stock at $13.90 I sold a $14 Call and brought in a premium. The stock never went above my $14 Strike Price and I was not assigned, so I still own the 1000 shares.
This morning SNAP received 2 upgrades from Barclays and Credit Suisse. The stock has been moving steady since the open. Last week I sold a Call because I wanted to get assigned, selling my stock, and using the money elsewhere. Today with the stock up to $14.60 on the upgrades, I entered a $14.50 “Stop Loss” sell order. The stock continued up to $14.85 and I adjusted my “Stop Loss” sell order to $14.75. The stock dropped off a little from $14.85 and I was executed on my “Stop Loss” order. I am out of SNAP!
11/7/17 – Buy 1000 Shares SNAP @ $14.00
12/5/17 – Sell 1000 Shares SNAP @ $14.75
Profit +$750
I was in SNAP since 11/7. Between 11/7 and today I brought in a Put premium of $650, a Call premium of $150 and today I sold the stock with a profit of $750. The total gain is $1550 and my total investment was 1000 shares at $14 ($14,000). That is a Rate of Return of 11% for a 1 month position. I am very happy the way this ended. Especially since it started with having a $12.50 stock put to me at $14. I don’t know where SNAP goes from here but I’m happy with my return, and I’m happy I’m out of the position. I’m gonna do a little Christmas shopping on SNAP!
Steve
The Options Coach