Profit of $$649.3 Trading Options Trading Journey #12 (revised trading)
Yesterday was a big red day. The unrealized gain was around $8000. I do not care about the unrealized since I did not sell it at that time. However, If that's close to the due date, I do care a bit.
Today, the market is bouncing back up as just recouping from yesterday's sell-off. For that, right now my account is up around $2800. Most of the selling put option has made money, but TSLA is red for the day which is my 100% of the stock is red. I have lost an unrealized loss of around $5000 for the TSLA yesterday.
Upon yesterday's cover call strategy, I had a realization that I can actually make good money with Cover Call Strategy if I play well. For now, my strategy is simple. Cover sell the stock far enough that it does not execute but if it were to execute, let it be. I still made money.
Yesterday, I had a Cover Call for a premium of $5.2647. I have purchased back this morning with $0.97 which made a profit of $429.47 for the trade. Then, I re-sold for the next week which is called "roll" in options trading. The premium that I collect was $19.68. Which in turn I do not have to have a margin requirement and can collect the premium. It means as long as I am not super greedy, I can do this over and over again and reduce the underlying security or buy more stock. So I decided to do buy more stock routes. Every week, I will try to sell the premium that I am comfortable with and happy with. In this case, it will be $690 by the next Friday.
revised version:
AMD has only one day left with a stock price of $91.5 as of right now. If it goes down tomorrow, there is no time to make a loss. When the price is still positive I just reduced the risk by rolling it to the next week. I have lowered the price by $3 to 88/85 put credit spread. I got 0.1 credit to roll it to next week with lowering the price; however, 0.1 means I will not get anything from it since I need to pay the commission of the brokerage.
Closed Trade:
TSLA: 10 Dec 11 690 Naked Put @5.2647 closed @ 0.97
AMD: 10 Dec 11 88/91 Put Vertical @ 1.0896 closed @ 0.57
Profit: $489.6 + 159.7 = $649.3
Open Trade:
TSLA: 10 Dec 18 690 Naked Put @19.68
AMD: 10 Dec 18 85/88 Put Vertical @ 0.5527
Current Position:
WORK: 5 Dec 20 40 Call @ 3.2051may be closed @ 3.3
ETSY: 10 Dec 11 149/152.5 Put Vertical @ 1.0896 margin requirement $2500
ETSY: 10 Dec 11 157.5/160 Put Vertical @ 0.5597 margin requirement $2500
PLTR: 10 Dec 11 26 Put @ 0.9748 margin requirement $26000
COST: 10 Dec 11 370/372.5 Put @ 1.0596 margin requirement $3000
SQ: 10 Dec 18 200/205 Put Vertical @ 1.0296
TSLA: 10 Dec 18 690 Naked Put @19.68 (Cover Put)
AMD: 10 Dec 18 85/88 Put Vertical @ 0.5527
TSLA: 114 shares
======================================================================= #sellingPut #optiontrade #sellingput #putvertical #PutVertical #trading #stock #option
=======================================================================
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.