It’s Sunday evening and I’m finally able to sit down with my computer.
I had one crazy, busy weekend; Fiore’s Pizza dominated my time for the last 4 days. I have a day of remembrance, once a year, to remember and celebrate the life of Fiore’s Pizza’s namesake, Mike Fiore. As most readers know, Mike was a very good friend of mine, a New York City Firefighter who made the ultimate sacrifice on Sept 11th, 2001. Yesterday, at Fiore’s, I had our annual “Mike Fiore’s Day” pizza party. We have Mike’s family and friends, and many NYC firefighter, for a day of pizza and drinks. The celebration went really well but the planning and setting up took some time. This wasn’t the only time consumer at the end of the week. We all heard the saying, “when it rains it pours.” Well, Thursday and Friday I had 3 major appliances break down; my ice machine, pizza oven, and dough mixer. On Friday, about noon, I had to leave my trading desk to go shop for a new dough machine because mine was unrepairable. I use a big, heavy, expensive, Hobart mixer. I found one and it was delivered Saturday morning about 11am. The pizza party was starting at 1pm. I had an electrician come at noon to hook it up. It’s not just a plug-in, it has to be hard wired into the electric panel. Also on Saturday morning, at about 8am, the mechanic came and fixed the pizza oven. I didn’t get a new ice machine yet, it’s also unrepairable, but I have a bar next door and the owner is a great neighbor, he’s giving me ice until I get a new one.
After a full day, and late night at Fiore’s, I’m finally relaxing, watching some football and getting this post done.
At the close on Thursday, and the open on Friday, it looked like I was gonna be assigned on my 100 shares of Nvidia (NVDA), 1000 shares of Square (SQ), and all 2000 shares of Advanced Micro Devices (AMD). The day developed into be a down day. However, NVDA was much higher than my Strike Price so I was assigned on those shares, even though it was close. My Strike Price is $190. During the week NVDA was as high as $199.29. On Friday it closed at $190.49.
SQ was high enough to be assigned but it fell big in the latter part of the day on Friday to below my Strike. My Strike Price was $63.50. On Thursday the high was $64.55 and Friday the high was $63.44. But, Friday afternoon it dropped all the way down to $60.45 at the close. I’m not worried about the stock getting back above my buy-in price, I would just like to get another Call sold this week.
I had two Calls sold on AMD, 10 contracts at $30 and 10 contracts at $31. On Friday the high was $31.33. I felt very strongly that I would get assigned on my $30 Strike Price Call, but when I left my desk at noon on Friday to go get my new dough mixer the stock was down to the $30.40 area. Before I left, with the stock well below my $31 Strike, I decided to place an order to sell a 10 contract Call to expire next Friday. I felt I wasn’t gonna get assigned this week so I wanted to get a jump on next week’s income. In my travels on Friday afternoon I looked to see how the market closed and to my surprise AMD closed at $30.97. It was close but I didn’t get assigned on my $31 Call. The order I placed was another 10 contract Call to expire next Friday with a premium of 50¢. I was filled on that Call.
Sell to Open 10 AMD 10/25/19 $31.00 C @ 50¢ (+$500)
This position comes with a Risk Factor 1 and it’s listed in my Active positions.
Let’s take a look at the trades that came to an end on Friday at the close.
My NVDA Call expired and I was assigned. I made $430 on the stock sale and $350 on the premium.
4/18/19 – Buy 100 Shares NVDA @ $185.70
10/18/19 – Assigned 100 Shares NVDA @ $190.00
Profit +$430
10/11/19 – Sell to Open 1 NVDA 10/18/19 $190.00 C @ $3.50 (+$350)
10/18/19 – Expired 1 NVDA 10/18/19 $190.00 C
Profit +$350
I had two Call sold on AMD. The $30 Call was assigned, but the $31 Call was not. With the $30 Call I made $650 on the stock sale and $350 with the premium.
10/7/19 – Buy 1000 Shares AMD @ $29.35
10/18/19 – Assigned 1000 Shares AMD @ $30
Profit +$650
10/14/19 – Sell to Open 10 AMD 10/18/19 $31.00 C @ 35¢ (+$350)
10/18/19 – Expired 10 AMD 10/18/19 $31.00 C
Profit +$350
The $31 AMD Call was not assigned so I only made profit with the premium, $600.
10/11/19 – Sell to Open 10 AMD 10/18/19 $30.00 C @ 60¢ (+$600)
10/18/19 – Expired 10 AMD 10/18/19 $30.00 C
Profit +$600
SQ was assigned so I keep the premium and I keep my stock.
10/15/19 – Sell to Open 10 SQ 10/18/19 $63.50 C @ $65¢ (+$650)
10/18/19 – Expired 10 SQ 10/18/19 $63.50 C
Profit +$650
Another fantastic week. I’m having a crazy good year. Let’s hope I can keep it going. I’ll be talking about my yearly Rate of Return in a few weeks. It’s a little early to count my chickens.
Total Weekly Gain +$3030
I hope you had a great weekend. Tomorrow starts another week. I’ll get a good night’s sleep and be ready to go in the morning.
Successful Trading,
Steve
The Options Coach