What a great week! It’s amazing the money you can make when the market moves as you predicted, and you pick the correct trades.
I basically had 3 trades come to an end this week. All 3 were Covered Calls, and I was assigned on my shares on all 3. 2 trades involved Advanced Micro Devices (AMD), and the other was Micron (MU). Let’s take a look how they played out.
Advanced Micro Devices – Covered Call
This 1st trade was the last (3rd) leg of my Triple Play Hedge. For those not familiar with this trade and trade strategy, I’ll be writing a separate post about this Triple Play Hedge this weekend. If you want to learn about my strategy just hit the link.
This 3rd leg is pretty simple. I owned 1000 shares at $32.75 and I had a 10 contract Call sold against them. It was a $33.50 Call with a premium of $900. The Call expired and I was assigned on my shares at the $33.50 Strike Price.
7/5/19 – Sell to Open 10 AMD 7/26/19 $33.50 C @ 90¢ (+$900)
7/26/19 – Expired 10 AMD 7/26/19 $33.50 C
Profit +$900
7/18/19 – Buy 1000 Shares AMD @ $32.75
7/26/19 – Assigned 1000 Shares AMD @ $33.50
Profit +$750
As I said, this was the last leg of my Triple Play Hedge (TPH). The entire TPH lasted 3 weeks and it brought in a total of $3450. This is over 3 weeks! This is not part of this weekly gains report. Watch for my post about the entire TPH and how it played out.
Micron – Covered Call
This Micron (MU) Covered Call was also a very simple trade. On 7/19 I bought 1000 shares and sold a 10 contract Call. I was assigned on the shares and the total result was a gain of $1100.
7/19/19 – Sell to Open 10 MU 7/26/19 $46.00 C @ 60¢ (+$600)
7/26/19 – Expired 10 MU 7/26/19 $46.00 C
Profit +$600
7/19/19 – Buy 1000 Shares MU @ $45.50
7/26/19 – Assigned 1000 MU @ $46.00
Profit +$500
Advanced Micro Devices – Covered Call
This AMD Covered Call started as a Naked Call. But I already owned 1000 which were covering a LEAP Call I sold. The bottom line is this was a $34 Naked Call and the stock closed at $34.02 and I was assigned on the shares I already owned. I really didn’t care how this trade worked out because I owned the other 1000 shares, and I owned them at $29.38 so I made a great profit getting assigned. These shares I bought on 4/3/19. Take a look at the expiration of the Call and the assignment of the stock and if you have any questions send me an email.
7/22/19 – Sell to Open 10 AMD 7/26/19 $34.00 C @ 35¢ (+$350)
7/26/19 – Expired 10 AMD 7/26/19 C
Profit +$350
4/3/19 – Buy 1000 Shares AMD @ $29.38
7/26/19 – Assigned 1000 Shares AMD @ $34.00
Profit +$4620
Total Weekly Profit +$7720
Start learning this options trading game, you can have complete financial independence!
Watch for my post on my completed Triple Play Hedge.
Steve
The Options Coach