I hope everyone is excited to put 2020 behind us. Starting a new year always gives you a feeling of starting with a clean slate. We put troubles behind us and we have renewed hopes and dreams for better things to happen. I pray that all your dreams come true and you enjoy a happy and healthy 2021.
Watching the ball drop is always a great feeling for better things to happen, but I must say I felt more excitement when the clock hit 4pm for the closing bell of the market on Thursday afternoon. I also felt it this morning at 9:30am for the open bell to start 2021. You might say I’m a little too wrapped up in the market, but with COVID, the market gives me hope. It gives me freedom and security! It gives me the ability to take care of my family and help others. All while sitting in the comfort of my own home. I think this is something to be excited about.
Not long after the bell I made my 1st trade of the year. I always look forward to my 1st trade. I want it to be a good one and hopefully it will be a sign of things to come in the new year.
Back on 12/18/20 with Tesla at $660 I bought 1 contract of the 1/21/22 $670 LEAPS for $175 ($17,500). Tesla has been moving great and today is no different. If you remember I entered this position with the hope to make $2000 but I hung in because the stock kept moving. Over the weekend I said I’ll change my goal to $5000. This morning the stock was up again. I know there’s another year before expiration but this is an option and I like to take profit. With my profit at about $4200 I placed a Sell to Close with the premium of $225 which would give me the $5000 profit. The order was filled in about 3 minutes. This trade gave me a Return on Investment (ROI) of 28.5%.
12/18/20 – Buy to Open 1 TSLA 1/21/22 $670.00 C @ $175.00
1/4/21 – Sell to Close 1 TSLA 1/21/22 $670.00 C @ $225.00
Profit $5000
This is a great start to 2021! Tesla might continue up which would have given me more profit but I think it’s important to know where you want to exit a trade. I don’t care where Tesla goes! I’m very happy to start the year with a $5000 gain. I can always jump back in! And by the way, Tesla is still moving lol.
Please check out the new section in Main Street beats Wall Street. It’s called “The Grasshopper Field.” You can start with Grasshopper Intro.
Successful trading,
Steve
The Options Coach