r/StockOptionCoffeeShop

https://preview.redd.it/sqk9r2403x1h1.png?width=780&format=png&auto=webp&s=c036f6f73f2d2c9323d67908e7970b274c1b0de9

Thought I'd post this as folks may wonder how I approach things.

Pretty good drop in the market this morning, and it hit all 5 stocks I held in inventory over the weekend.

I opened up 5 new trades (AAOI, COHR, CRWV, LITE, and VRT) but, for the time being, have held off on selling any calls against the stocks I held in inventory; I'm taking a bit of a risk in thinking they'll rebound either later today or tomorrow. For those 5 held in inventory, some of the premiums for the same strike as last week are yielding only 0.5%. So we'll see how it goes.

https://preview.redd.it/hfy79o8roi1h1.png?width=907&format=png&auto=webp&s=6a8842a1e658463e86b8c07e526f037a07f3e4ed

For the week, premium realized gains of $45k or 6.1% on basis of $741,470. This brings May to $90k, the 2nd quarter to $171k, and the YTD to $266k.

This 5 DTE ATM B/W campaign returned 3.0% compared with buy and hold's 0.3% loss and S&P 500's 0.13% gain.

At week's end, 5 stocks remain in inventory: APLD, AXTI, BE, IONQ, and MU. One of my two CRWV buy/writes also did not expire ITM but I am moving those shares to my 'buy and hold' category.

Trade Log:

https://preview.redd.it/tswt9ev1pi1h1.png?width=671&format=png&auto=webp&s=9deaa6a20f56828bb8e9719075be12d6cbc0f2d1

https://preview.redd.it/7ko1t6jphd1h1.png?width=698&format=png&auto=webp&s=ee26db62b1dd0ea9406d46dff5e78e30fc75599d

A nice week for premiums, but not so good on holding 5 stocks that dropped OTM and I'm holding for a loss. I plan to update with both a comparison with the S&P 500 and buy and hold, as well as the usual Saturday detailed update by ticker.

All told, $45k of premium received on a basis of $741k, or 6.1%.

https://preview.redd.it/k2hkpf0d5j0h1.png?width=700&format=png&auto=webp&s=d8b93235c17748174a19834a867f1fc92e11e822

BE, COHR, CRWV, and LITE were in inventory over the weekend, so just the short calls were today's trades for those underlyings.

I got lucky with LITE as I bought back last week's short call mid-day Friday, capturing 85% of its premium for that week, and it would have expired ITM and hence, been assigned. My cost is $882.10, so with it's movement today, got a nice premium.

APLD, AXTI, IONQ, and MU are all current week combined buy/writes.

I was thinking about a buy/write on OKLO, but they announce earnings this week, so I'm on the fence. I may add it to the list at a later time.

Have fun out there!

I've been asked what size portfolio I'm running to get my results. Unfortunately, I haven't been tracking (but may start now), but here are the numbers for this week. Full report tomorrow.

$31k on $617k or 5.1% for the week.

https://preview.redd.it/qxitauoapzzg1.png?width=693&format=png&auto=webp&s=023c2334cbdcdad2581cd2ac52397df04f4b817d

https://preview.redd.it/kvcrboqsy30h1.png?width=843&format=png&auto=webp&s=8b6dcc8635678d6d7cfd8fd6ec9a646bf883c4f2

Total premium earned for the week of $31,149 bringing May to $48,989, the second quarter to $88,485, and the year to date of $291,367.

Amount at risk for the week of $616,754 for a rate of return of 5.1%.

Given the market dynamics, I opened an unplanned short call on AMD on their earnings date and was rewarded with an additional $4,493.76 in premium.

BE, COHR, and CRWV expired OTM so those stocks remain in inventory.

LITE is also in inventory, as it was an interesting case. With a strike of $882.50, even though it was only a fraction of a percent OTM mid-day Friday, I was able to capture 85% of its premium for the week. Since I was tentatively planning on doing a buy/write on them next week, I closed the call for a capture. As it turns out, the stock rose and closed at $903.80.

Trade Log:

https://preview.redd.it/zkp37nbqz30h1.png?width=664&format=png&auto=webp&s=672baa124bcabe5eb781ac49ce68f7d19d0d2dd9