Results Week Ending 11/22/24
I am very happy with the way this week turned out. With all the trades I made I only had one that didn’t work out well, also it wasn’t so bad. This will be the first trade I discuss.
This week I bought one Long Call, I had four Covered Calls positions, which two were assigned, and I sold one Put. First we will look at the Long Call.
Super Micro Computer Inc.
This stock has been taking a beating but the last week and a half it has been moving up. I liked some of the news about the stock and they were to announce earnings on Wednesday, Nov 20th. I felt the earnings were going to be good so I went against one of my rules and bought a short term Call Option. On Tuesday the 19th, the day before earnings, I bought 1 contract of the 11/22/24 $29 Call. I bought the Call on Tuesday and it was to expire on Friday. I advise never to do this! I have been doing well so I decided to take a shot with 1 contract.
It turns out the company never posted their earnings on Wednesday. They are being disciplined by the NASDAQ for Non-Compliance with the exchange’s listing rules after missing deadlines for providing financial reports to investors, but that’s not helping me. I’m sure I’ll get a letter in the mail in about a year about a class action suit.
The stock pulled back a few dollars and with expiration coming fast, like one day away, I decided to sell my position with a $200 loss. Not bad since I only invested $400. I’m surprised I didn’t lose the entire $400. It turns out the stock moved up after I sold on Thursday and continued to move on Friday. If I held until expiration I would have made $1000. Oh well, one of the rules with options is never lose your entire investment; get out before that happens.
This trade didn’t work out for me. If the company didn’t mess around with the earnings report maybe it would have. No problem! I move on. Now the earnings are due out on Tuesday, Nov 26. I might buy another 1 contract Call Option. But thistle I’ll go out a bit with the Expiration Date. Maybe a month!
11/19/24 – Buy to Open 2 SMCI 11/22/24 $29.00 C @ $2.00
11/21/24 – Sell to Open 2 SMCI 11/22/24 $29.00 C @ $1.00
Loss-$200
Trump Media & Technology Group
This is the second Call I sold against these 200 shares and I was not assigned again. I’ll try to sell another Call this week.
11/19/24 – Sell to Open 2 DJT 11/22/24 $33.00 C @ $1.00 (+$200)
11/22/24 – Expired 2 DJT 11/22/24 $33.00 C
Profit +$200
This trade gave me a 3% premium for the one week trade. NICE!
Rocket Lab USA
I bought these 200 shares for $21.40 and sold the $21.50 Call. I was assigned. I made $20 on the stock sale and the $150 premium which was 3.5%.
Covered Call with Assignment
11/13/24 – Buy 200 Shares RKLB @ $21.40
11/22/24 – Assigned 200 Shares RKLB @ $21.50
Profit +$20
11/19/24 – Sell to Open 2 RKLB 11/22/24 $21.50 C @ 75¢ (+$150)
11/22/24 – Expired 2 RKLB 11/22/24 $21.50 C
Profit +$150
Albertsons Companies
I bought 400 shares of Albertsons (ACI) and sold a 4 contract Call. I was not assigned. The premium was 2% for the one week trade. I’ll sell another Call this week.
11/19/24 – Sell to Open 4 ACI 11/22/24 $20.00 C @ 40¢ (+$160)
11/22/24 – Expired 4 ACI 11/22/24 $20.00 C
Profit +$160
Palantir
I bought 200 shares of PLTR and sold a 2 contract Call. I was assigned. I made $80 on the stock sale and I keep the 3% premium of $370. All of the trade this week I received really nice premiums. They all fit into my “1 Week/1%” strategy.
Covered Call with Assignment
11/20/24 – Buy 200 Shares PLTR @ $60.60
11/22/24 – Assigned 200 Shares PLTR @ $61.00
Profit +$80
11/19/24 – Sell to Open 2 PLTR 11/22/24 $61.00 C @ $1.85 (+$370)
11/22/24 – Expired 2 PLTR 11/22/24 $61.00 C
Profit +$370
Palantir
I sold a 2 contract Put with PLTR. This is a strategy I love when the stock is moving up. With the stock $60 and $61 I sold someone the right to put the 200 shares to me at my Strike Price of $58. I did not think the stock was going to come down to $58 so I felt I was selling this Put for free money, the premium. I did not lay any money out of my pocket. By taking their money they had the right to sell me their 200 shares at $58. The stock never came down to $58 so they did not sell me their stock. And I keep the free money of $170. Thank you!
11/19/24 – Sell to Open 2 PLTR 11/22/24 $58.00 P @ 85¢ (+$170)
11/22/24 – Expired 2 PLTR 11/22/24 $58.00 P
Profit +$170
Total Weekly Gain $950
All of these small trades added up to be a very nice week’s salary.
Successful trading,
Steve
The Options Coach