Results Week Ending 3/8/24
Sorry for the late report but this week I had a Bull Call Spread expire and I had to write a page on this strategy so you would understand what I was writing about. The Bull Call Spread page is now in the top menu bar.
I had another good week but I continue to move slowly. This week might not be as good as the last two because I have as much invested as I want and I might not get out of any positions this week. I will if some of the options I’m holding make nice moves. All the options I’m holding expire in June or later. However, if I have the gains I want I will sell. I also have 3 Bull Call Spreads expiring this Friday. They are with SQ (2) and MU (1). I had a Bull Call Spread expire Friday and it’s part of this report. I ended up with the maximum profit.
Let’s take a look at the trades that ended on Friday.
Micron
On 3/4 I bought a 2 contract option with Micron (MU). The position did not expire until June but I had the profit I wanted so I sold on Friday.
3/4/24 – Buy to Open 2 MU 6/21 24 $95.00 C @ $9.40
3/8/24 -Sell to Close 2 MU 6/21 24 $95.00 C @ $12.00
Profit +$520
I bought the option with the premium at $9.40. I paid $1880 for the 2 contracts. My goal was to get out with the premium at $11.75 which would have been 25%. I ended up getting out at $12 for a gain of 27.6%.
Advanced Micro Devices
I bought this 1 contract Call with Advanced Micro Devices (AMD) on 3/1 and sold on 3/8. This option also didn’t expire until June.
3/1/24 – Buy to Open 1 AMD 6/21/24 $200.00 C @ $24.70
3/8/24 – Sell to Close 1 AMD 6/21/24 $200.00 C @ $34.70
Profit $1000
I paid $2470 for the option and wanted to get out at $30.90 which is 25%. The stock moving up and I didn
t sell until it hit $34.70 for a profit of $1000 and a return of 40.4%
SNAP
I bought a 5 contract Call with Snap (SNAP). I saw the chart and I felt it was ready for a pop. Luckily I was right and I grabbed a nice profit. I bought the position on 3/1 and sold on 3/8.
3/1/24 – Buy to Open 5 SNAP 6/21/24 $12.00 C @ $1.28
3/8/24 – Sell to Close 5 SNAP 6/21/24 $12.00 C @ $2.15
Profit +$435
Block
This trade was a Covered Call. I bought 200 shares of Block (SQ) at $78 on 3/4 and sold a Covered Call on 3/6 bringing in a premium of 50¢ for a $100 premium. I should have sold the Call when I bought the stock but I got greedy and I felt the stock was gonna move up so I waited for a higher premium. It didn’t work! The stock moved down and I didn’t get the Call sold until 2 days later. It didn’t work the way I wanted but I still made some money.
3/4/24 – Buy 200 Shares SQ @ $78.00
3/8/24 -Assigned 200 Shares SQ @ $79.00
Profit +$200
3/6/24 – Sell to Open 2 SQ 3/8/24 $79.00 C @ 50¢ (+$100)
3/8/24 – Expired 2 SQ 3/8/24 $79,99 C
Profit +$100
The stock moved up above my $78 Strike Price and I was assigned. I made $1 on the stock, $200 on the 200 shares. And I kept the $100 premium. The Covered Call gave me a profit of $300. I’m Happy!
Micron
Please read my new page on Bull Call Spreads. I explain the inner workings of the strategy. It sounds complicated but it’s really very simple. With the strategy you buy a (Long) Call and you sell a (Short) Call. The Call you buy has a lower Strike Price and the Call you sell a higher Strike Price. Both have the same Expiration Date. When you buy the Call you spend money and when you sell the Call you bring in a premium.
To make the maximum profit the stock has to close above the higher Strike Price, which is the Call you sold. I entered this position on 2/22 and the Expiration Day was 3/8. This was a 2 week position.
Bull Call Spread
2/22/24 – Buy 2 MU 3/8/24 $86.00 C @ $2.65
2/22/24 – Sell 2 MU 3/8/24 $89.00 C @ $1.45
Net Cost = ($1.20)
MU Closed Above the $89 Strike for Max Profit
Profit +$360
Buying the $86 Call cost me $2.65. Selling the $89 Call gave me a $1.45 premium. The Net Cost for the position is ($1.20). With the stock closing above the $89 (Short) Call I made the Maximum profit. Read the Bull Call Spread page to see how all the math works. This is a very safe strategy and a favorite with options traders. After you read the page, email me any questions you have.
Total Weekly Gain$2615
It was nice having 2 winning weeks in a row with decent profits. Since I am fully invested this week might not be as big unless I sell some options.
Successful trading,
Steve
The Options Coach