Follow My Covered Call and Naked Put Trade Strategies

Covered Calls

Trades for the Week Ending May 07, 2021

Monday 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.

Qualcomm Naked Put

 

May 07 – Sold Naked Puts on Snap

Snap Naked Put

Snap price chart

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.

NRG Covered Call

NRG OTM Covered Call

NRG Price Chart

All the best in trading and in life.

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Covered Calls

Income-Generating Trades Initiated with Qualcomm and Lyft

Wednesday May 5, 2021

I initiated two trades today that generated income by selling option premium: one covered call and one naked put.

Qualcomm Logo

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%.

Qualcomm Covered Call

 

Lyft Logo

Lyft

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%.

Naked Put Trade with Lyft

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.

 

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COVERED CALL POSTS
NAKED PUT POSTS
SYSTEMATIC TRADE POSTS