Follow My Covered Call and Naked Put Trade Strategies
Covered Call and Naked Put Trades for the Week Ending October 22, 2021Friday October 22, 2021
Steel Dynamics (STLD) – Opened Covered Calls
Tesla (TSLA) – Opened Naked Puts
This is the fifth time that I have sold naked puts on Tesla since late July. All have closed OTM (so far).
Covered Call Trade Performance
So far in 2021, I have closed 81 covered call trades which have generated an average annualized return of 21.7%. How does my trade performance compare to holding SPY you ask? Well for the trades posted here, the average improvement over buying and holding SPY is 7.9% annualized and the median improvement is 19.2% annualized.
Naked Put Trade Performance
So far in 2021, I have closed 124 naked put trades which have generated an average annualized return of 15.6%. Please note that I calculate returns on a cash basis even though the trades are in a margin account. If, like some of the “expert option traders” on YouTube, I calculated my annualized returns on the basis of a 15% margin requirement then my average annualized return would be 104% (15.6% x (100/15)).
My open naked put and covered call trades can always be viewed here....
Covered Call and Naked Put Trades for the Week Ending October 15, 2021Saturday October 16, 2021
Docusign (DOCU) – Sold Naked Puts
I sold naked puts on Docusign and since I already have an open covered call trade on this stock, I now have established a covered strangle.
Medtronic (MDT) – Opened Covered Calls
SPY – Opened Naked Puts
As I chose to not open covered calls with stocks that have earnings reports due before the November 19 monthly options expiry date, in order to get to my total portfolio allocation to US equities I sold naked puts on SPY.
My open naked put and covered call trades can always be viewed here.
Covered Call and Naked Put Trades for the Week Ending October 08, 2021Friday October 8, 2021
Salesforce (CRM) – Opened Naked Puts
Share prices of Dropbox and Capri Holdings had fallen enough to put my trades in the losing category and I chose to close them early.
Dropbox (DBX) – Closed Covered Calls
Capri Holdings (CPRI) – Closed Covered Calls
Docusign (DOCU) – Opened Covered Calls
Crowdstrike (CRWD) – Opened Covered Calls
Nvidia (NVDA) – Opened Covered Strangles
I purchased shares of Nvidia and then sold an equal number of Nov-12 $220.00 calls and Nov-12 $185.00 puts to establish a covered strangle trade.
Short-Term Market Outlook
My short-term outlook for the broad US equity market is Neutral-Bullish.