Sold my 5 contract Planet Fitness (PLNT) Call.
A little over a week ago I liked the Candlestick Chart on PLNT. I bought 5 contracts of the 5/15/20 $65 Calls. I paid a premium of $6.90 for a total of $3450.
I’ll be very honest with you. I planned on holding these options for a few months. The stock took a beating lately and on Oct 9th it hit support and started heading north. I felt like the stock was gonna return into the 70’s, and I still do. They reported earnings today and I wasn’t even looking into it, for 2 reasons. #1, I’m preoccupied with watching my Naked Calls that are expiring today. And #2, I planned on holding for a while. Well, the earnings were good, at least they were in line. With the stock shooting up to $70 it looked promising. It backed off a bit so I decided to bail out and lock up some profit. If it blew the Street’s estimates out of the water I might have held a little longer. But reporting in line I feel there might be a pull back from today’s high. If it does pull back I’ll be jumping back in. For right now I’m happy putting $1260 in my mattress. That’s a 36.5% return in about a week.
10/30/19 – Buy to Open 5 PLNT 5/15/20 $65.00 C @ $6.90 ($3450)
11/8/19 – Sell to Close 5 PLNT 5/15/20 $65.00 C @ $9.42 ($4710)
Profit +$1260
Remember, this was a long option. When you buy options, take profit! Things can change real fast. Then you have to deal with Time Decay. There are plenty of times I get out of options too quickly, and that’s fine! I’ll never go broke taking profit. When trading options is important to stick to a plan of taking profit and being discipline.
I’ll be watching PLNT very closely for a new entry point.
This is $1260 profit unexpectedly added to my weeks gain. This is developing into a very good week. Watch for my weekly report.
Also, my opinion on U.S. Steel (X) may be changing. I’m doing some research and I’ll be writing about my findings this weekend. If you read my last post, I bought 1000 shares to cover my 10 contract Call. I bought at $13.42 and the stock is covering a $13.50 Call. As I write, the stock is at $13.59. It looks like I might be assigned, which I was hoping for. I haven’t been so high on X and like I said, that might be changing. At least, short term anyway, but I am a swing trader!
Successful trading,
Steve
The Options Coach