Follow My Covered Call and Naked Put Trade Strategies
Stock Trades for the Week Ending December 03, 2021
Sunday December 5, 2021November 29
Tesla (TSLA) – Sold Naked Puts
Marathon Petroleum (MPC) – Bought Shares
This is a Tier 1 trade to which I allocated 15.8% of my US equity holdings. I paid $62.24 for my shares of MPC and set up a 5% trailing stop.
Yandex (YNDX) – Bought Shares
This is a Tier 2 trade to which I allocated 4.5% of US equity holdings. I paid $72.17 for my shares and set up an 8% trailing stop.
Charles Schwab (SCHW) – Opened Covered Calls
This is a Tier 2 trade to which I allocated 8.8% of my US equity holdings.
November 30
Nvidia (NVDA) – Sold Naked Puts
NVDA Dec-10 $285.00 puts passed my screen today and there appears to be price support at the $288.50 level so I sold the puts for a potential 23.3% annualized return.
December 02
Conocophillips (COP) – Sold Naked Puts
Asset Allocations
My tactical asset allocation model currently has allocations as provided in the table below.
Open Trades
My open trades can always be viewed here.
...Stock Trades for the Week Ending November 26
Saturday November 27, 2021Trader Education
I am currently reading Alpha Trader by Brent Donnelly. Brent’s trading style is vastly different than mine but there is definitely some useful information in his book and I have no trouble recommending it if you are looking to expand your trading knowledge.
Covered Call Trades Closed
I had a number of calls that expired on November 19. This was the first time this year that all my calls expired OTM. That is partially the result of me selecting further OTM strike prices but also the result of the stocks not performing well.
November 22
From an analysis of the performance of stocks that have passed my screens this year, I see three groups that have provided different levels of profit. I am going to label them Tier 1, Tier 2 and Tier 3 based on descending levels of historical profitability. When I have room in the US equity allocation of my portfolio, I will select Tier 1 stocks first. If there are no Tier 1 stocks that pass my screens, I will move onto Tier 2 stocks and then onto Tier 3.
Marathon Petroleum (MPC) – Shares Purchased
Marathon Petroleum is a Tier 1 stock selection.
Schlumberger (SLB) – Shares Purchased
Schlumberger is a Tier 2 stock selection.
November 23
Alibaba (BABA) – Opened Naked Puts
This is a Tier 3 trade.
November 26
With news of the most recent COVID variant hitting international markets with a vengeance today, most stock prices declined and four of my trailing stop losses were triggered. Stocks in the oil industry suffered particularly large losses as the price of oil fell by more than 13%. My Cedar Fair, Marathon Petroleum, Schlumberger, and Teck shares were all sold for losses of 1.1%, 4.0%, 3.6%, and 4.3% respectively.
Interestingly, two Tier 1 stocks passed my screens today and they were both oil companies. Three Tier 2 stocks passed and one of them is Schlumberger. I’ll watch the price action on crude on Monday and decide whether to buy stocks of companies in the oil industry.
With the sale of the four stocks mentioned above, I have room in my portfolio for the purchase of some US stocks on Monday.
Asset Allocations
My tactical asset allocation model currently has allocations as provided in the table below.
Open Trades
My open trades can always be viewed here.
...Stock Trades for the Week Ending November 19, 2021
Friday November 19, 2021November 15
Cedar Fair (FUN) – Purchased Shares at $47.51
November 16
Tesla (TSLA) – Opened Naked Puts
Tesla shares recently spiked up to over $1,200 but are currently trading around $1,039 so I feel comfortable selling low delta, short-duration puts.
November 17
Facebook (FB) – Purchased Shares at $343.58
Digital Turbine (APPS) – Sold Shares Held
My first closed equity trade for shares purchased with no calls sold was a disappointing one as the trade lost 10.2% in six days. I set up a 10% trailing stop on my holding of APPS and that stop was triggered today. The basis of the stock selection is solid and I know that trade results like this will happen. The recent history of the strategy I am using provides individual trade returns ranging from -11% to 40% so this trade was at the extreme end of likely losses. Onto the next trade.
November 18
Teck Resources (TECK) – Purchased Shares at $26.25
November 19
I had four calls expiry OTM this evening so I will decide next week on whether to sell the stocks and close the trades or keep the stocks and sell December calls.
I closed several naked put trades just before the close today. My updated naked put trade table is presented below.
Open Trades
My open trades can always be viewed here.
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The Systematic Trader. This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.