Follow My Covered Call and Naked Put Trade Strategies
Trades for the Week Ending May 07, 2021Monday May 10, 2021
May 06 – Closed Two Naked Put Option Trades Profitably. Established a Partial Covered Strangle
On Thursday I bought back the SLB and NEM naked put options that I had sold earlier. I paid $0.07 for the SLB puts resulting in a 90% annualized profit and I paid $0.10 fr the NEM puts resulting in a 27% annualized profit. The average annualized return on my most recent 20 closed naked put trades is 31%.
I opened a covered call trade on Qualcomm on May 05 and today I sold some naked puts (fewer than the number of calls I sold) to establish what I refer to as a partial covered strangle. It is my way of generating more income with my capital.
May 07 – Sold Naked Puts on Snap
May 07 – Initiated Covered Calls with NRG Energy
On Friday afternoon, shares of NRG passed one of my covered call screens so I purchased shares and then sold an equal number of Jun-18 $36.00 calls and Jun-18 $37.00 calls. The premium I received was $1.25 and $0.90 respectively.
All the best in trading and in life....
Income-Generating Trades Initiated with Qualcomm and LyftWednesday May 5, 2021
I initiated two trades today that generated income by selling option premium: one covered call and one naked put.
Qualcomm Covered Call
Qualcomm has been passing one of my covered call screens recently and now that the quarterly earnings report has been released, I decided to buy shares and then sell near-the-money Jun-18 $135.00 calls. If the price of Qualcomm closes above $135.00 on June 18, this trade will generate an annualized return of 24%.
Late in today’s trading session, I sold naked May-21 $47.50 puts on Lyft for $0.63 which sets up a healthy potential annualized profit of 27%.
If you jump over to my Open Trades page, you will see that I have active covered call trades on twelve stocks and naked put trades on four stocks. Most of the covered call trades are currently positioned to provide the maximum trade profit which is, on average, 44% annualized. That gives me a warm fuzzy feeling but I have to remember that paper profits are just that.
Option Trades with Barrick Gold (GOLD), Shell (RDS.A) and Twitter (TWTR)Monday May 3, 2021
I just checked my email subscription list and see that I have new subscribers from the U.K., Australia, and the U.S. Welcome aboard. To all my email subscribers, I am considering cutting back on the number of emails that I send but there is an issue with that. I don’t want to bombard you with an email every day but the purpose of me posting every day that I trade is to display honesty. If I only post on the weekend with a summary of trades opened and closed during the previous week, I could leave out any newly opened trades that went south right at the outset. If I post each day that I trade, there is essentially no opportunity for that. At this point, I am struggling a little with my thoughts on the pros and cons of the number of posts I publish and therefore the number of emails I send out. If you have an opinion you would like to share with me on this, please contact me at firstname.lastname@example.org.
As I have little time to post at this time of the year (i.e. construction season in Canada), I am simply going to present my tables for trades initiated today.
Barrick Gold OTM Covered Call
The table below presents a summary of three sets of calls that I have sold on Barrick Gold since May 26. Today, I sold May-21 $22.00 calls for $0.80.