Follow My Covered Call and Naked Put Trade Strategies

Covered Calls

Covered Call and Naked Put Trades for the Week Ending October 22, 2021

Friday October 22, 2021

October 19

Steel Dynamics (STLD) – Opened Covered Calls

Steel Dynamics Covered Call

 

October 21

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).

Tesla Naked Puts

 

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.

Closed Covered Calls

 

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)).

Closed Naked Put Trades

 

Open Trades

My open naked put and covered call trades can always be viewed here.

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Covered Calls

Covered Call and Naked Put Trades for the Week Ending October 15, 2021

Saturday October 16, 2021

October 11

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.

Docusign Naked Puts

 

October 15

Medtronic (MDT) – Opened Covered Calls

Medtronic Covered Call

 

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.

SPY Naked Put

 

Open Trades

My open naked put and covered call trades can always be viewed here.

 

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Covered Calls

Covered Call and Naked Put Trades for the Week Ending October 08, 2021

Friday October 8, 2021

October 04

 

Salesforce (CRM) – Opened Naked Puts

Salesforce Naked Put

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

Dropbox Covered Call

 

Capri Holdings (CPRI) – Closed Covered Calls

Capri Covered Call

 

October 07

 

Docusign (DOCU) – Opened Covered Calls

Docusign Covered Call

 

Crowdstrike (CRWD) – Opened Covered Calls

Crowdstrike Covered Call

 

October 08

 

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.


Nvidia Covered Calls

Nvidia Naked Puts

 

Short-Term Market Outlook

My short-term outlook for the broad US equity market is Neutral-Bullish.

S&P 500 Equal Weighted Price Chart

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COVERED CALL POSTS
NAKED PUT POSTS
SYSTEMATIC TRADE POSTS