Trades for the Week Ending May 07, 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...

Covered Call Initiated With Eli Lilly (LLY)

The stock market reacted negatively to Eli Lilly's earnings report today pushing the share price down 2.7% at the close. That price action led to Eli Lilly passing one of my screeners so I bought shares at $183.18 and then sold OTM May-21 $185.00 calls for $2.94...

Closed Covered Call With AMD

Shares of AMD closed on April 23 at $82.76 which was well above the $77.00 strike price on the calls I sold on April 13 for $3.70. Accordingly, my shares will be assigned to the holder of the calls and I get to record a successful trade with a 39% annualized profit....

Early Assignment of CVS Shares

On April 01, I set up a covered call trade with CVS shares by purchasing the shares at $74.34 and then selling slightly OTM Apr-30 $74.50 calls. CVS had an ex-dividend date of April 22 and on April 21 the holder of the calls exercised their right to call the shares...

Covered Call Initiated on Schlumberger (SLB)

With Schlumberger's earnings report out of the way and no knee-jerk reaction in the stock price, I bought shares in SLB at $25.65 today and then sold OTM May-21 $26.00 calls for $0.95 which sets up potential profits as outlined in the table below. The astute reader...

Covered Call Trade Initiated in Citigroup (C)

I have to say at the outset that opening a covered call trade today felt uncomfortable. For me, it feels like the stock market has had an excellent run and is about to roll over. That being said, as a systematic trader I have to follow my processes. Today, I bought...