I closed last week's newsletter hoping for some movement from earnings this week, and got some in the form of new trades in JNJ & TXN for the portfolio.
On top of that, an update on 2 trades that were closed for profits in the last week.
$77 profit in Texas Instruments (TXN)
$43 profit in Best Buy (BBY)
$77 profit in TXN
On Jan 10 TXN was showing a nice set up for a trade, however placing the trade would require holding the position through earnings, which is not something I'm usually fond of.
As a result, I issued the trade as a bonus trade, highlighting the potential risk of holding the position through earnings.
The trade was to sell a $150 cash-secured put expiring on Feb 16 for an upfront premium of $117.
Thankfully, TXN ended up rallying and I took the opportunity to take profits and closed the trade right before earnings.
I paid $40 to close the position, which locked in a realised profit of ($117 - $40) = $77 (or 66% of max profit).
As mentioned in the opening paragraph, TXN immediately provided another opportunity in the March expiration, which is a new trade I enterd on Friday and shared with my private community.
If you'd like to read about my trade entry and exit points in my own portfolio (which are not recommendations), you can find out more about the Bread Crumb subscription below.
It costs $49 a month, meaning this one trade in TXN more than covered your cost for January, and any other winning trades (like the $43 in BBY below) is pure profit.
$43 profit in BBY
Another trade that got taken off for a profit was in BBY.
At the beginning of the year I placed a trade, selling the $70 cash-secured put expiring Feb 16 for $77.
It took some time for the extrinsic value of the trade to drain, but eventually after about 3 weeks I took the trade off for $43 in realised profit (56% of max profit).
BBY was a portfolio staple in 2023 with 14 trades and 14 wins.
Let's hope this is just the first of many for 2024.
Closing thoughts & useful links
There are some big names scheduled for earnings next week like MSFT, SBUX and AAPL (among others).
Although volatility is still extremely low, I will be taking the opportunity to open new positions in these stocks if they present themselves.
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.