8/7/21 – Recall we have a 26$ call we sold. Earnings helped this trade out, and the $UIS closed Friday at $24.83. If we subtract out the premium received from all the sold calls ($1.21), our true cost basis is $23.62 at expiration, which means we could have a profit of $121 dollars if nothing changes between now and 9/17. We will break even as long as the stock stays above $24.29 (Entry of $25.50 – premium collected $1.21). If you are sick of this trade and want to bail, the call we sold last week collected $0.59, and is now worth $0.80, so we have a loss there of about $0.21, but netting out the stock’s price of $24.83 and other prior premium collected is $25.50 – $1.00 or $24.50, meaning you could close this Monday morning for a theoretical profit of $33 total. Yes, you can sell the stock for less than you paid for it and still make a profit because of covered calls! Jerry is going to wait an hold as the stock seems to be trending upwards, and broke Bob’s key resistance of $23.90 (blue line below). We also have 41 DTE (Days Till Expiration) and as readers know, we like to close closer to the 21 DTE.
Trading Journal – July 24, 2020 – went long corn futures, shorted the dollar, long precious metals, long aussie dollar, neutral $SPCE
Trading Journal – July 23, 2020 – /SM75Q20 $CSCO $T $INTC /M6AU0
Trading Journal – July 22, 2020 Closed out SNAP and IBM earnings trades, and opened up TWTR, SLV, small dollar (short) and precious metals (long) trades.
Trading Journal – July 21, 2020 $LOGI $JNJ $T $SNAP $TXN – Closed 2 earnings trades and opened 2 more
Trading Journal – July 17, 2020 $MVIS $CSCO $T $NFLX