Trade Highlight #10

The tenth trade highlight already! I’ll be unpacking with a bunch of trades placed and closed at the same moment to celebrate this first little milestone.

Last week we discussed a naked put option on Cisco Systems after volatile earnings. You can read this post via this link.

Introduction

This is the first time we will discuss something that I’ve done on one of my managed accounts instead of my own.
Here are the options I will discuss this week:

-P WBA 17 JAN 2020 $45 $1,63 x2
-P CAT 17 JAN 2020 $105 $4,65 x1
-P ABBV 17 JAN 2020 $60 $2,64 x2
-P CSCO 17 JAN 2020 $42 $1,52 x2
-P XOM 17 JAN 2020 $62,50 $1,94 x2

All of these positions have been started on the 3rd of September and closed on the 5th of September.

You can find the details about these trades on my the Work for Others page on the document for managed account #1.

Background information

I ran into a bit of luck with this streak to be honest. By putting my clients assets together in one account I got an enormous boost in collateral meaning that I could sell more options. The general indices had run up slightly but on the day I had more collateral to work with, we saw a short dip.

I decided to use 50% of the extra collateral for some option selling. As you can see all the positions were sold for January of 2020. I was willing to wait.

The market decided to award me for my courage and kept rising. Within two days I closed all these newly opened positions for the following prices:

WBA $1,03 (opened for $1,63) x2
CAT $2,85 (opened for $4,65) x1
ABBV $1,97 (opened for $2,64) x2
CSCO $1,03 (opened for $1,52) x2
XOM $1,31 (opened for $1,94) x2

This means that without transaction costs I earned $658 in just two days on these positions.

Long story short

I got the opportunity to utilize a lot more money for one of my clients which made me open a lot of long positions in a week that kept taking the markets higher.

I managed to close all five positions within two days to make a gross $658 or a net €573,62. I was prepared to wait month as I sold all options for January of 2020, however I got lucky with the market conditions and cashed out.

My personal profit from this is 573,62*0,15 = €86,04.

To find more information about options CLICK HERE.

For any questions regarding options, leave them down below in the comment section or simply hit me up on any of my social media channels!

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