Results week Ending 11/29/24
I hope everyone had a great Thanksgiving, we all have a lot to be thankful for!
I spent the entire long weekend in Boston with my wife, Irene’s family. I didn’t have time to write this report so here it is now. The week started off pretty well with the sale of a Long Option I bought with Palo Alto (PANW). Besides this trade I had two Covered Calls expire without assignment. And I had a Put Option I sold expire with an assignment. Let’s take a look at these trades below.
Palo Alto
Friday, Nov 22nd I saw a good opportunity for the buying of an option with Palo Alto (PANW). I bought 1 PANW 12/20/24 $380 Call for a premium of $13.75. This cost me $1375. The way the stock moved I felt it could have a nice pop soon. On Monday, Nov 25th the stock did not move much, but on Tuesday, two trading days after I purchased the Call the stock moved up enough where I could sell my position for a profit I was happy with. The Call that I paid $13.75 for, I sold for $20. This was a quick profit of $625. A Return on Investment (ROI) of 45.4%.
11/22/24 – Buy to Open 1 PANW 12/20/24 $380.00 C @ $13.75
11/26/24 – Sell to Close 1 PANW 12/20/24 $380.00 C @ $20
Profit +$625
As always, when buying Long Options, I go out at least a month with my Expiration Date. I went out to 12/20 with my Expiration Date for Time Decay protection. As you see I only kept the position for two trading days.
Albertsons
On Nov 19th I bought 400 shares of Albertsons (ACI) at $19.33. At that time I sold a 4 contract Call to expire Nov 22nd. I brought in a premium of 40¢ for $160. I was not assigned. This was a return of 2% for the three day trade.
Since I was not assigned I sold another Call on Nov 25th. This trade below. Again I was not assigned. For this trade I brought in a premium of 50¢ for a return of 2.5%. It might not sound like a lot but if you made this trade every week the return for the year would be 130%. Now it sounds pretty good! Slow and Steady, Steady and Slow. It’s trades like this that make you rich. This is a great Grasshopper Trade!
11/25/24 – Sell to Open 4 ACI 11/29/24 $20.00 C @ 50¢ (+$200) +2.5%
11/29/25 – Expired 4 ACI 11/29/24 $20.00 C
Profit +$200
Right at the close on Friday I knew I was not going to get assigned again so I sold another 4 contract Call to get a jump on this week. I sold 4 ACI 12/6/24 $20 Calls. This is the same Strike Price I sold the last two Calls at. The last two I received 40¢ and 50¢ respectively. This Call I received a premium of 90¢ for $360. A 4.6% return on my investment.
11/29/24 – Sell to Open 4 ACI 12/6/24 $20.00 C @ 90¢ (+$360)
Quantum Computing
I only bought 100 shares of QUBT at $8.30. I sold this Call bringing in a premium that is 12.6%. That’s nice, but I don’t like the way the stock is moving. As I write I’m trying to get another Call sold but the stock is down to $6.70. Not a major problem. Since I only bought 100 shares, at the moment I’m down $160 on the stock but I brought in $105 with the premium. If I get another Call sold I’ll be looking good!
11/25/24 – Sell to Open 1 QUBT 11/29/24 $9.00 C @ $1.05 (+$105) +12.6%
11/29/24 – Expired 1 QUBT 11/29/24 $9.00 C
Profit +$105
Super Micro Computer
This is a very volatile stock. I sold a 4 contract Put. The stock was around $37 per share and I sold the $34 Put. The stock dropped down below my strike Price and I was assigned. I now own 400 shares of SMCI at $34. For selling the Put I received a premium of $1.05 for $420.
11/25/24 – Sell to Open 4 SMCI 11/29/24 $34.00 P @ $1.05 (+$420)
11/29/24 – Expired 4 SMCI 11/29/24 $34.00 C
Profit +$420
On Friday I knew I was going to have the 400 shares of the stock put to me so before the close I sold a 4 contract Call against the shares being put to me. I sold 4 SMCI 12/6/24 $35 Calls for a premium of $1.70. Because of the volatility the premium was very high. The total premium is $680. That’s a return of 5%. If I get assigned these two trades would have brought in $1100 plus I’ll make $400 on the sale of the stock. I hope I get assigned this Friday.
11/29/24 – Sell to Open 4 SMCI $12/6/24 $35.00 C @ $1.70 (+$680)
Total Weekly Gain +$1350
If you have any questions on any trade send me an email.
Successful trading,
Steve
The Options Coach