The market opened higher on 4 Feb 22 (Friday), boosted by good earnings reports from Amazon and Pinterest. While I did not think that these contracts would be exercised as the strike price was still higher than the share price, I decided not to leave anything to chance and closed the contracts early. The final premiums collected are in bold brackets.
| Name of Stock | Average Price (USD) | Strike Price (USD) | Current Share Price (USD) | Premium Collected (USD) | Returns (%) |
| 63.5 | 31.5 | 27.25 | 60 —> (57) | 0.94 (0.89) | |
| Nio | 43.5 | 25 | 23.96 | 25 —> (20) | 0.57 (0.4) |
| Palantir | 21.78 | 14 | 12.94 | 14 x 13 = 182 —> (154) | 0.59 (0.50) |
| Apple | 181.5 | 177.5 | 172.39 | 45 —> (43) | 0.24 (0.23) |
| Tesla | 1082 | 950 | 923.32 | 260 —> (260) | 0.24 (0.24) |
| Subtotal | 572 (534) |
The only contract that I did not close was Tesla as the premium was still high and I was confident that it would not hit the strike price of $950. So, the contract expire worthless as it eventually ended trading at $923.32.
It had been an extremely difficult week to trade as the market was highly volatile. The week started with the market rallying, signaling that the rebound might be here. However, the market lost steam in mid-week and Facebook’s earnings report dragged down the tech and social media stocks. On the last day, Amazon saved the market from spiraling down again.
Come next week, I feel that the market may edge up higher but it also largely depends on the CPI (Consumer Price Index) data that is released on Thursday (10 Feb 21). If it falls below expectations, then the market may slide down again on Thursday.
So, celebrate the small wins, and any profits, no matter how small, are still profits. Be proud of what you have achieved and hang in there if you are losing money. I wish all of you the best of luck!
***
Keen to learn about options trading but do not wish to pay for expensive courses, this newbie guide will help gain the knowledge and fundamentals to understand options better. And it’s totally free!
The Newbie’s Guide To Options Trading
The LEAPS Strategy has helped me make more than USD120,000 in 2021. Here’s all you need to know about this strategy that can help you increase your wealth exponentially:
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MY TRADES
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How To Buy Options on Interactive Brokers (Step-By-Step)
If the bear market in 2022 is making feel depressed as your stocks come tumbling down, read this article to find out how you can use options trading to help you claw back some of your losses as you await market recovery:
How I Do Earn Even When The Stock Market Is Bearish?
I watched tons of videos on YouTube since 2020 and if you are wondering if there are any useful channels that you can subscribe to for learning market trends, TA, FA, check out this compilation here:
My Secret Weapons For Options Trading: I Watch These YouTube Financial Channels Every Day
I concluded my first year of options trading with more than USD160k of gain, see how I do it and the capital I use for every month to give you a sensing of the percentage yield I get out of my gains:
1st Year Options Trading Recap: The Journey Towards SGD$217,509 Profits In 2021
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I Cut $135,715 Worth Of Losses In The Last 1.5 Months
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