Loss of $1481.02 Weekly option Journey #18
S&P was flat, Dow was up little, and Nasdaq was down a little today. However at the mend of the market, stock market was plummet which indicate tomorrow's market can be very week. In the after hour at the moment, tomorrow's market seems to be stable now so nothing too much to worry about it at the moment.
Zoom (ZM) was the one holding went down about 6% today. It create my position on ZM at the maximum loss. Thank God that I only sold 5 contracts of it. Since it was not only the Zoom's fault that it went down 6%. SQ, ETSY, Chewy, Wayfair, and other internet related company got hit hard today. Not the major player's like FANG or Microsoft. It gave me a confident that it will not go down more in the future. Therefore, I decided to sell ZM 355 / 350 of 10 contract and get little more than $1.18. It will be max loss of $3800. I decided to sell two weeks, since I want to lower the stock price as well as wanting to get higher premium.
AMD was just below the in the money. My put was $92 and it was around $91.8. It was still positive, I decided to close out the trade. Yes, it is posible I might get $700 tomorrow, but there are high probability that I might lose $2000. Time is not my side and I decide to close out the trade.
I closed the TSLA for 0.54. Since it has nothing more to get it, so I decided to close this trade and sold for two weeks out and now it is $700 Cover Call instead of $680 for it.
I also sold AMZN for 3120 / 3125 Put vertical for 1.0193. It is because it was in the range for about a month.
For this week, I don't think I will close out any more positions.
I might sell little more tomorrow one or two more holdings for one to two weeks. However, this is a one week that I lost the money. For this week's closing trade I made
TSLA : $778.47
SQ: -$528.24
ZM: -$1705.2
AMD: $79.7
TSLA: $144.48
Total: - $1230.79
Yes, I did roll down the ZM, so technically I might not lose, but I just wanted to be clear what took place in my trading.
Closed Trade:
TSLA 1 Dec 24 680 Cover Call @ 1.9848 closed @ 0.54 profit of $144.48
AMD 10 Dec 24 89/92 Put Vertical @ 0.7797 closed @ 0.7 profit of $79.7
ZM 5 Dec 24 395/400 Put Vertical @0.9396 closed @ 4.35 loss of $1,705.2
Total loss of $144.48 + 79.7 - $1705.2 = -1481.02
Open Trade:
TSLA 1 Jan 8 700 Cover Call @ 12.3246
ZM 10 Jan 8 350 /355 Put Vertical @ 1.1895
AMZN 8 Dec 31 3120 / 3125 Put Vertical @ 1.0193
Current Position:
two weeks
AAPL 10 Dec 31 124/128 Put Vertical @ 0.8497
AMZN 8 Dec 31 3120 / 3125 Put Vertical @ 1.0193
three weeks
JPM 10 Jan 8 117/120 Put Vertical @ 0.8297
ZM 10 Jan 8 350 /355 Put Vertical @ 1.1895
cover call
TSLA 1 Jan 8 700 Cover Call @ 12.3246
TSLA: 120 shares
======================================================================= #sellingPut #optiontrade #sellingput #putvertical #PutVertical #trading #stock #option
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I am not a financial advisor. Any trades listed are my own personal trades and meant for educational purposes only.
Option trading bears high risk and high return strategy for trader.