Profit of $778.47 Weekly Option trade Journey #17
Updated: Dec 23, 2020
The new news that came out yesterday which I did not look at closely was about Apple (AAPL) and JP Morgan( JPM).
AAPL is the market leader / highest valuation company in the United States / ultimate recession-proof stock. It announced that they will make their own chips not only that they are going into the car space like Tesla by 2023. It gave great confidence to the investor and it seems there is no stop to it. Since it is not as volatile as Tesla or other stock. I decided to sell two weeks instead of one week. One week, I can only get 40 cents on a contract whereas if I sell two weeks it's about double. I do not believe it will go down below the price of $128. After the sold it started to go up right now is $134 already.
One other trade I did was for JP Morgan (JPM). The Fed finally allows banks to buy back the stocks. Due to the 2008 market meltdown, banks were not allowed to buy back the shares hense their stock price cannot be overly inflated. Now, they have an option to buy back their own shares to increase the value of it. Because of this issue, when the market was melting down yesterday, they were going up for the day. I believe it trend should be continued and it should remain the same or go up. As the volatility of this stock is really low, I decided to go for the two and a half weeks sell.
Tesla is going down again today. I have closed the earlier position of $720 to $0.56. Also resold the contract down to $680 to make a little more profit for the week. I do not mind the stock to be going up or down. Well, preferably up, but not too fast. Since I am accumulating the stock every week or two weeks at a time basis. My goal for Tesla is 1000 shares in two years. After that, I will switch to the other stock to accumulate. Thought can be changed any time, but for now, that is my strategy. I have added another 6 shares of Tesla today as the stock price went down substantially for the past two days.
Closed Trade:
TSLA 1 Dec 24 720 Cover Call @ 8.3447 closed @ 0.56 profit of $778.47
Open Trade:
TSLA 1 Dec 24 680 Cover Call @ 1.9848
AMD 10 Dec 24 89/92 Put Vertical @ 0.7797
AAPL 10 Dec 31 124/128 Put Vertical @ 0.8497
JPM 10 Jan 8 117/120 Put Vertical @ 0.8297
TSLA 6 shares @ 636.52
Current Position:
weekly
ZM 5 Dec 24 395/400 Put Vertical @0.9396
AMD 10 Dec 24 89/92 Put Vertical @ 0.7797
two weeks
AAPL 10 Dec 31 124/128 Put Vertical @ 0.8497
three weeks
JPM 10 Jan 8 117/120 Put Vertical @ 0.8297
cover call
TSLA 1 Dec 24 680 Cover Call @ 1.9848
TSLA: 120 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.