The FAAMGs Are Up 15% In 2020; The Remaining 495 S&P Stocks Are Down 8%
- 12/12 Positions have cumulative net profit. Source of profit:
- 4 stock driving profit
- 4 short options driving profit
- 4 stock and options driving profit
Overall net profits would be higher with just owning the stock (driven by DXCM and EW). Removing DXCM and EW from the calculation we have $19,000 in profit ($9,004 from stocks, $10,000 from short options).
6 positions assigned. 3 positions expired. 1 Diagonal down.
Moved to the cottage in Canada on Thursday. Issues with internet and couldn’t get trades done to roll positions and avoid assignment/expiration. Managed to get Schwab trades done but ran out of time with IB :(. Love the cottage…..hate the service.
WFC 28 covered call
VFC 52.50 put
TLRY 9.5 put
DXCM has been on a wild ride since early March with a low of $182.07 and a high of $428.59. The increase has made it a significant percent of my account. Interesting challenge to manage. Protect on the downside after such a run up and leave some upside. Getting called away will trigger a capital gain that I would prefer to manage over time (make it long term).
In mid May I switched to a “ladder” of strike prices under the stock price to increase the protection. I was not able to protect all of the gain. The stock has dropped $90,775 in value. Options have increased in value by $59,625 for a net loss of $31,510. The position has a profit of $90,305 in 44 days.
The current position is below. 4.8% protection and 2.8% upside. Options are all Jun 19 expiry (monthly only).
Not sure if I have done the right management. If I had known the stock would go on such a run I wouldn’t have sold the calls to start with! Hope this might help someone manage a similar position. Comments/suggestions are welcome.
Bought to open VXX Jan 21 2022 6.0 Puts / Sold VXX Jun 03 2020 31.0 Puts @ 0.09 Credit.
The short is 7 dte and the long is 602 dte, and I can write a new option every week.
Expirations – everything else was rolled out a week
OXY 05/29/2020 17.00 Covered Calls
SLB 05/29/2020 19.00 Diagonal Calls
VXX 05/29/2020 30.00 Diagonal Puts
VXX 05/29/2020 30.50 Diagonal Puts
Assignments – no good roll was available for additional cash flow so I’m letting these go..
AA 05/29/2020 8.00 Covered Calls
WBA 05/29/2020 37.50 Covered Call (I got the initial time premium plus the $0.4575 Div)
AAL 11.0 CALLS STO @.66
AAL 10.0 PUTS STO @.58
ACB 11.0 & 13.0 PUTS STO @.39 & .55
ACB 18.0, 19.0,21.0 CALLS STO @1.18 & .73 & .88
DKNG 28.0, 32.0 PUT STO @1.10 & 1.30
DKNG 32.0 CALL STO @1.10 Stock will be called
OSTK 18.0 CALLS STO @1.00 MAYBE BTC for .15
OSTK 19.0 CALLS STO @.75