Follow My Covered Call and Naked Put Trade Strategies

Covered Calls

Stock Trades for the Week Ending December 03, 2021

Sunday December 5, 2021

November 29

Tesla (TSLA) – Sold Naked Puts

Tesla Naked Put

 

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.

Marathon Petroleum Price Chart

 

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.

Yandex Price Chart

 

Charles Schwab (SCHW) – Opened Covered Calls

This is a Tier 2 trade to which I allocated 8.8% of my US equity holdings.

Charles Schwab Covered Call

 

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.

Nvidia Naked Put

Nvidia Price Chart

 

December 02

Conocophillips (COP) – Sold Naked Puts

Conocophillips Naked Puts

 

Asset Allocations

My tactical asset allocation model currently has allocations as provided in the table below.

Asset Allocation Table

 

Open Trades

My open trades can always be viewed here.

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Covered Calls

Stock Trades for the Week Ending November 26

Saturday November 27, 2021

Trader 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.

Alpha Trader Book

 

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.

Closed Covered Calls

 

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.

Marathon Petroleum Price Chart

 

Schlumberger (SLB) – Shares Purchased

Schlumberger is a Tier 2 stock selection.


Schlumberger Price Chart

 

November 23

Alibaba (BABA) – Opened Naked Puts

This is a Tier 3 trade.Alibaba Naked Put

 

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.

Asset Allocation Table

 

Open Trades

My open trades can always be viewed here.

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Naked Puts

Stock Trades for the Week Ending November 19, 2021

Friday November 19, 2021

November 15

Cedar Fair (FUN) – Purchased Shares at $47.51

Cedar Fair Chart

 

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.

Tesla Naked Put

 

November 17

Facebook (FB) – Purchased Shares at $343.58

Facebook Price Chart

 

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

Teck Price Chart

 

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.

Naked Put Trade Table

 

Open Trades

My open trades can always be viewed here.

 

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COVERED CALL POSTS
NAKED PUT POSTS
SYSTEMATIC TRADE POSTS