Covered Call and Naked Put Trades for the Week Ending September 24, 2021

by | Sep 24, 2021 | Covered Calls

September 21

Closed Covered Calls

On the monthly option expiration day of September 17, three of my call options expired in the money and the shares were called away from me. Those calls for AUPH, AMAT and ADSK produced excellent annualized trade returns of 200%, 80% and 31%. My PYPL, SYF, V, ROST and JPM calls expired out of the money and I sold all my shares in the five companies today. The trade returns are provided in the table below.

Closed Covered Calls

Having closed 75 covered call trades so far this year, my record now is an average annualized return of 25.1% and a median annualized return of 34.5%.

My short-term market outlook is Neutral-Bearish so the three covered call trades that I opened today were based on ITM calls.

Dropbox (DBX) – Opened Covered Calls

Dropbox Covered Call

Eli Lilly (LLY) – Opened Covered Calls

Eli Lilly Covered Calls

Charles Schwab (SCHW) – Opened Covered Calls

Charles Schwab Covered Calls

Peloton (PTON) – Closed Naked Puts

On September 17, I should have bought-to-close my Peloton puts but was too busy to do so. The puts closed ITM so I was assigned the shares at $105.00 and subsequently sold them for $100.91. That was a loss but it would have been worse had I held onto the shares as they closed this week at $92.64.

September 24

Arcelormittal (MT) – Opened Naked Puts

Arcelormittal Naked Puts

Short Term Equity Market Outlook

My current outlook is bullish.

S&P 500 Equal Weighted Price Chart