Happy weekend!
Short update this week as I'm wrapping up my first course of the year.
Thanks to everyone who indicated your interest for the hybrid option course. I just need to figure out how everything will work and I'm looking to send out more info at the beginning of February.
Look out for it if you submitted your name!
This week:
$115 profit in SMH
$115 profit in SMH
A couple of weeks ago there was a small bout of volatility in the markets, and SMH (the ETF that tracks semiconductors like NVDA) looked like a good opportunity to initiate a new trade.
I sold a $210 cash-secured put, expiring on Feb 21 for an upfront premium of $215.
However, I didn't like one specific element of the trade, which is that NVDA has earnings coming up on Feb 19. Obviously NVDA is a hyped stock right now, and a large move after earnings could move the index.
For that reason I made this a “bonus trade” update which is where I'm comfortable taking the trade, but there may be things to look out for.
Of course the plan is to get out of the trade way before NVDA's earnings even come into play, but it's always best to plan for any possible eventualities.
As it turns out, this is one trade that went pretty much according to plan, and my order to close the position was hit just 48 hours later, resulting in $115 realized profit, without having to worry about NVDA.
SMH was an amazing part of my portfolio in 2024 with $1,828 realized profit over 9 trades.
Let's hope this is the first trade of many in SMH to rack up even more profits in 2025.
This trade - and all trades I share here - are shared with my private community as updates within my real portfolio (not recommendations).
If you'd like to be part of the community, consider checking out the link below.
Closing thoughts & useful links
Earnings provided a couple of opportunities in JNJ and TXN this week.
Lots of portfolio regulars like KMB, SBUX, MSFT, WM, CAT, AAPL, CL, and ABBV are reporting earnings next week - I'm looking forward to entering new trades!
Have a good weekend!
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This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.