I just sold 100 shares of Nvidia at $440.75. The funny part of this trade is you probably didn’t even know I owned 100 shares of NVDA. I make so many trades that even the most loyal readers might not have known I owned 100 shares of NVDA. In fact, they couldn’t have known. I say this because I didn’t know I owned it myself! Let me explain.
On 7/14 I bought 100 shares of NVDA at $404.75. On 7/20 I sold a 1 contract 7/24/20 $407.50 Call. The stock closed on 7/24 at $407.78. At the close of most Expiration Dates I do the paperwork on Main Street beats Wall Street to show the results of the week. 99.9% of the time when a stock closes In-the-Money it get assigned. On 7/24 NVDA close at $407.78 and my Strike Price was $407.50. When I did my paperwork on that Friday afternoon I listed NVDA as getting assigned because it closed 28¢ In-the-Money. It turns out I was not assigned.
Today NVDA was up over $17. I was looking at the stock for a possible Covered Call. I planned on buying 100 shares and selling 1 Call. This is when I noticed I had 100 shares of NVDA in my account. I called my broker to see why I had the 100 shares. He informed me that my Call that expired on 7/24 was not assigned. CRAZY!
Now, I bought the stock at $404.75 and today the stock was over $441. I was debating whether to sell a Call or sell the stock with the big profit. With the stock up $17 today I decided to put a “Stop Lose” on the stock in the case it started to go down and I was looking at what Call to sell if the stock continued up. It turns out the stock went down to my Stop price and my 100 shares was sold at $440.75.
7/14/20 – Buy 100 Shares NVDA @ $404.75
8/3/20 – Sold 100 Shares NVDA @ $440.75
Profit +$3600
This is the craziest thing. I think only once in my 30 years of trading I wasn’t assigned on a stock closing In-the-Money. I went to my “Trade History 2020” page to make the adjustment on week ending 7/24/20. When I thought I was assigned at $407.50, my stock made me $275. Now that I wasn’t assigned and I sold it today the stock made me $3600. THANK YOU VERY MUCH!
This little story made my day!
Successful trading,
Steve
The Options Coach