Results Week Ending 1/10/20

I cannot complain about my 1st weekly results report of 2020.

Today we concluded our 1st full week of trading for 2020, and this is my 1st week ending report.

As you know I finished 2019 with a 101% return on the year. To me that is unbelievable and I’m very happy. We just finished our 1st full week of trading for the year 2020 and my results are continuing on the same track. I am also very happy about this. However, my concern is growing that we will have a pullback soon. Not that I see anything that leads me to believe that but this market is on a crazy run, and I feel a correction at this time is not only normal, but healthy. I just hope if, and when, it does happen I have some cash on the sidelines to get in some positions at bargain prices.

At the conclusion of this week I freed up a lot of cash with the selling out of positions, having options expire and getting assigned on stock. I will have a large margin account to start the week on Monday.

I’m gonna try to be very careful with my position selection in the coming week. I would love to find opportunities for Naked Calls. This is not the environment for Naked Calls but there are always opportunities around. One stock I’m watching is Weight Watchers (WW). The stock has been on a big run and it might be time for a pullback. I really like the premiums. I didn’t do anything this week because all my money was tied up. I’m liking the 1 week options to sell with the Strike Price of $47 or $47.50. There are good premiums and they’re $2 Out-of-the-Money. Could be a nice situation for a Naked Call.

OK, let’s get into this weeks trades. We’ll start with Square.

Square

I bought a 10 contract Call back on 9/5/19 to expire 6/19/19. I probably could have gotten out earlier for more profit but with a decent amount of time to the contract I held on. Even now there’s 6 months left to expiration but this is where Time Decay starts eating away at the premium, plus I’m trying to free up some cash. I had a $500 profit.

9/5/19 – Buy to Open 10 SQ 6/19/20 $65.00 C @ $8.75 ($8750)

1/10/20 – Sell to Close 10 SQ 6/19/20 $65.00 C @ $9.25 ($9250)

 Profit +$500

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Walmart

I have a 10 contract LEAPS with Walmart in my Stock Alternative Portfolio. I’m trying to sell Calls against these options to bring in extra money. When you sell a Call against a LEAPS in this way it’s a Diagonal Call Spread. I love the strategy. I just go out a bit with the Strike Price to try an ensure I don’t get assigned. Here with the stock in the $119 area I sold the $125 Calls. I didn’t get assigned and I keep the $250 premium. I look at this premium as a dividend. It was a 3 week option and I brought in $250. If I do this 12 times a year I’ll bring in an extra $3000 for the year. Like I said, for a stock this size it like a dividend.

12/16/19 – Sell to Open 10 WMT 1/10/20 $125.00 C @ 25¢ (+$250)

1/10/20 – Expired 10 WMT 1/10/20 $125.00 C

 Profit +$250

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Marvell

I sold a Call against my 1000 shares of MRVL and I wasn’t assigned. I keep the stock and I keep the $350 premium.

1/2/20 – Sell to Open 10 MRVL 1/10/20 $27.50 C @ 35¢ (+$350)

1/10/20 – Expired 10MRVL 1/10/20 $27.50 C

 Profit +$350

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Square – Covered Call

I bought 1000 shares of SQ and sold a Call to make a Covered Call. The stock went up and I was assigned. Everyone know that’s my strategy, but the stock went up more than I expected. The stock close at $67.99. I had a decent sized Opportunity Lost but that’s OK. Look at the week I had anyway.

1/3/20 – Buy 1000 Shares SQ @ $62.80

1/10/20 – Assigned 1000 Shares SQ @ $63.50

 Profit +$700

1/3/20 – Sell to Open 10 SQ 1/10/20 $63.50 C @ $1.00 (+$1000)

1/10/20 – Expired 10 SQ 1/10/20 $63.50 C

Profit +$1000

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Micron – Covered Call

I did the same with Micron as I did with Square. Bought the shares and sold a Call. Again, I had an Opportunity Lost. My Strike was $55.50 and the stock closed at $56.67. Not bad, only a $1.

1/2/20 – Buy 1000 Shares MU @ $54.80

1/10/20 – Assigned 1000 Shares MU @ $55.50

 Profit +$700

1/2/20 – Sell to Open 10 MU 1/10/20 $55.50 C @ 80¢ (+$800)

1/10/20 – Expired 10 MU 1/10/20 $55.50 C

Profit +$800

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I’m very happy with these results for the 1st full week of 2020 after a fantastic 2019. Let’s hope the market continues and the only pullbacks are healthy corrections.

Total Weekly Gain +$4300

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Have a great week and get some studying in. There’s a lot of money to be made.

Successful trading,

Steve

The Options Coach