Another nice week, but with the market down the last few days, the coming weeks might see less gains.
I’m sorry for this late report. I have been crazy busy since the weekend. I had an Oktoberfest at my house this Saturday which brought 100 people. Between the clean-up, and starting to prepare the yard for the winter, it was a time consuming job.
I have a few trades that expired this past Friday which gave me a pretty good week. Let’s start with Micron.
Micron
I sold a Call back on 7/18/19. This was part of the Diagonal Bull Call Spread I did. If you have been reading my reports you know I sold the Long Call I was using to cover the Short Call of the spread. The spread consist of a Long Call and a Short Call. Well, on Friday, with Micron (MU) down, I was able to sell the Short Call with a $1000 profit. I sold the Call for $3500 on 7/18 and did a “Buy to Close” on Friday, spending $2500 for the $1000 profit I just mentioned. You must understand Short positions!
7/18/19 – Sell to Open 10 MU 1/17/20 $50.00 C @ $3.50 (+$3500)
9/27/19 – Buy to Close 10 MU 1/17/20 $50 C @ $2.50 (-$2500)
Profit +$1000
Square
With Square (SQ) I did a Covered Call. I bought the stock and sold the Call At-the-Money. I was assigned so I didn’t make money on the stock sale. This is the 2nd week I sold a Call on these shares so I brought in 2 premiums before assignment. This week’s premium was $600.
9/17/19 – Buy 1000 Shares SQ @ $59.50
9/29/19 – Assigned 1000 Shares SQ @ $59.50
Profit $0
9/24/19 – ($58.20) Sell to Open 10 SQ 9/27/19 $59.50 C @ 60¢ (+$600)
9/29/19 – Expired 10 SQ 9/27/19 $59.50 C
Profit $600
Advanced Micro Devices
The last was a Covered Call with AMD but I was not assigned. I took in a $520 premium and the Call expired.
9/23/19 – Sell to Open 10 AMD 9/27/19 $31.00 C @ 52¢ (+$520)
9/27/19 – Expired 10 AMD 9/27/19 $31.00 C
Profit +$520
Total Weekly Gain +$2120
Above I mentioned it might be tough to make money in the next few weeks. I say this because the stocks I’m holding are down from where I bought. The beginning of the week has not been good for the market. This is why I prefer Naked Calls. I don’t like holding stock with Covered Calls but in some market environment you have to cover your Calls for protection. Especially in this volatile market! When the stock goes down you just have to wait it out until your stock goes back up to the point you can sell another Call. It’s all part of the game. When it happens, it gives you time to get some yard work done lol.
Steve
The Options Coach