This week was a great week! I feel like I’m getting back into trading full swing. I sold 1 long term position which locked in some nice money. In addition, closed 3 other short term position.
The long term position was with PayPal (PYPL). Way back on 8/23/17 I bought 100 shares of the stock at $60 per share. This Thursday I got out of that position by selling the 100 shares at $120. Yes I held the position for almost 2 years but I doubled my money. I will be back in PYPL very soon. Probably with buying a LEAP. Keep an eye on your email to see what I do.
8/23/17 – Buy 100 Shares PYPL @ $60.00
7/11/19 – Sell 100 Shares PYPL @ $120.00
Profit +$6000
On 6/27/19 I sold 100 shares of Netflix (NFLX) and bought 3 contract of a NFLX LEAP. I thought I’d be in these Calls longer but I saw a drop in the stock coming so I jumped out and locked in $1200. You can read about the trade and the reasons behind it at Out of My NFLX LEAPS. I’m sure I’ll be back in a position with NFLX very soon. I was in the position for 2 weeks and locked in $1200 on a $13,350 investment. That’s a Rate of Return of 9% in 2 weeks.
6/27/19 – Buy to Open 3 NFLX 6/19/20 $400.00 C @ $44.50 ($13,350)
7/11/19 – Sell to Close 3 NFLX 6/19/20 $400.00 C @ $48.50 ($14,550)
Profit +$1200
Triple Play Hedge
On July 5th I did one of my strategies with Advanced Micro Devices (AMD). I call in a “Triple Play Hedge.” Read my page Triple Play Hedge and then read the post when I reported getting in the position at AMD Triple Play Hedge.
This Friday 7/12 the 1st leg of the Triple Play Hedge expired and everything is going as planned. I owned 1000 shares of AMD to start the position and sold 3 Calls. 1 Covered Call and 2 Naked Calls. The stock was moving this week so I ended up covering the 2nd leg which expires next Friday. The shares I previously owned to start the position I bought on 7/1/19 at $32. The 1st leg was a $32.50 Call which expired Friday and I was assigned at $32.50. I made 50¢ on the 1000 shares for a profit of $500.
7/1/19 – Buy 1000 Shares AMD @ $32.00
7/12/19 – Assigned 1000 Shares AMD @ $32.50
Profit +$500
The orders for the expired 1st leg Call are below. I keep the premium of $350.
7/5/19 – Sell to Open 10 AMD 7/12/19 $32.50 C @ 35¢ (+$350)
7/12/19 – Expired 10 AMD 7/12/19 $32.50 C
Profit +$350
Status of the Triple Play Hedge
I still own 1000 shares of AMD. These are the shares I bought to cover the 2nd leg. I bought them because the stock was moving above the Strike Price of the 2nd leg and I had to cover my Naked Option.
I bought the 1000 shares on 7/9/19 for $32.65 per share. These shares are covering a $33 Call which expires next Friday. In addition I have 1 more 10 Call which is a $33.50 Naked Call.
Total Weekly Gain +$8050
Great week! Money in the mattress!
Let’s watch and see what happens to the 2nd leg this week. Also, I’ll be making more moves to bring in some cash.
I hope you’re having a great weekend. The weather in New York is beautiful.
Steve
The Options Coach