I opened $ANF VERTICAL 240531 CALL 145.0/CALL 140.0$ ,ANF: sold bear calls on Abercrombie & Fitch for strike at $140/$145. Premium collection is $110 over max risk of $500 per contract which will give me 22% ROI. ANF is building a lower high lower low in recent weeks yet still have some strength ahead of its earning on 22nd May. Nevertheless sold the bear calls at $140 near the all time high to act as resistance. Will monitor and adjust the trade accordingly.
I opened $RCL VERTICAL 240531 CALL 145.0/CALL 150.0$ ,RCL: sold bear calls on Royal Caribbean Cruises with strike at $140/$145. Premium collection is $170 over max risk of $500 per contract which will give me 34% ROI. RCL now trades at about 5% higher than its Jan 2020 peak and around its all time high after good earning beats on 25th April. It is current on oversold region so might experience short term pull back on profit taking and trades around its most recent peak on 4th Apr around $141.5. Sold these calls at $145 for safety and bought back at $150 as risk control so let’s see how this trade goes in 31 days.
I opened $AMD CUSTOM 240531 PUT 135.0/PUT 140.0$ ,AMD: sold bull puts at $140/$135. Premium collection is $94 over max risk of $500 which will give me 18% in ROI over a period of 31 days. AMD is showing signs of reversal after falling 36% from its peak at $227.5 on 8th Mar to $145.29 on 19th April. Sold these bull puts at $140 further giving some margins of safety as AMD is now trading at $160. Breakeven trades at $139.06 on expiry and lose money if lower.
I closed $Dollar General(DG)$ ,DG: took in a loss on my DG positions when my shorts were nett off at $150. I shorted them at $132. DG trades had not been kind to me, I’ve been selling secured puts to try to cover the shorts at lower price entry but DG keep running up from $132 to $168 at its peak. Tried to cover back at lower entry at $150 to reduce losses and that’s what happened today. DG however had come back down 18% since 14th Mar after its earning and not trade at $139 therefore potentially further reduce my losses. Well, I can’t win every trade and this is one of the losing ones I’m sharing.
I closed $DG 20240503 150.0 PUT$ ,DG: collected full premium of 1.3% when these cash secured puts were called early. They were meant to expiry on 3rd May and deep in the money with only about $0.25 of time value left. Since I intend to let it expired in the money and buy in the stocks to nett off my shorts, this is good outcome as I managed to close these transactions 3 days earlier than expiry and recycle my margin for other trades.
I opened $DPZ VERTICAL 240517 CALL 540.0/CALL 545.0$ ,DPZ: sold bear call spread on Domino’s Pizza after its earnings. Strike was selected at $540/$545 right at the top of its intraday. Premium collection is $125 over max $500 of risk so it’ll be about 25% when expires. The stock rose 8% after earnings before settling now at around 5%. Short this counter on resistance level as $540 is around the double top level. We’ll observe how this trade turned out.
I opened $TSLA 20240531 220.0 CALL$ ,TSLA: sold another covered call as TSLA continue to rally up. Strike was the same at $220 and this time premium collection is 2.25% over 32 days. The stock continue its intraday March up and its now up 18%. I still have another $20 margin before it hits my strike so 32 days now is a very long wait. We’ll see if $220 resistance can hold when these contracts expires.
I opened $SOFI 20240524 7.0 PUT$ ,SoFI: sold cash secured puts on SoFI right after earnings. The strike was still maintained at $7 which makes the delta high at around 0.45 when sold these puts as current market price was around $7.10. Premium from these puts were 5.1%. SoFI announced its earning on 29th April pre market and beat the Q1 estimates but provided a weaker Q2 outlook. As of now, the stock is down 10%. The $7 support is still holding for now, but could be breached anytime if investors or general market turned more bearish. For now, I continue to lean on the $7 support as guide for my sold puts. I’m focusing on the fact that SoFi had now turned from an unprofitable tech stock to making profits 2 quarters in a row
I closed $BIIB VERTICAL 240517 PUT 180.0/PUT 185.0$ ,BIIB: close these sold Bull Puts positions with >90% profits in 12 days out of a 30 days contract. Premium collected is $121 over $500 of risk so that’s 24% ROI in 12 days. The options were sold at the right timing and reversal happened on 19th April and is now up 15% off its low. Happy to collect early and recycle the capital elsewhere.
I opened $TSLA 20240531 220.0 CALL$ ,TSLA: sold covered call on TSLA with strike at $220 and 32 days till expiry on 31st May. Premium for this 1.2%. TSLA had good news out from China on FSD collaboration with Baidu and is now up 12% for the day. Took the opportunity to sell the covered call at the higher end to capitalise on the news. Strike at $220 is around the 200 days MA key resistance so that should provide a cap in the mean time.