Happy September!
I typically update the previous month's trades during the first week of the new month.
However there were so many profitable trades in August that I'm updating a couple more positions here and pushing the monthly update to next week.
This week:
$125 profit in McDonald's (MCD)
$75 profit in Procter & Gamble (PG)
$125 profit in MCD
This is a very similar trade to last week's AMGN trade with practically identical entry and exit points. The only difference is that this trade wasn't an earnings trade, although it still showed all the signs of a great opportunity.
I sold the $250 cash-secured put for $205 and was actually a little bit concerned about being early, as you can see in the screenshot below.
The reason for this was the huge drop in the global stock market that happened a few days earlier, and I wasn't sure if it was the beginning of a larger or longer down move.
Of course we now know that not only did that not happen, the markets instead rebounded straight up.
As a result I decided to squeeze a little bit more out of the trade and paid $80 to close the position, resulting in $125 in realized profit (or 61% of max profit).
MCD is yet another staple in my portfolio with 6 wins from 6 trades so far in 2024. That's basically going in and out of trades every 5-6 week.
So far this has brought in $1,189 in realized profits, and I'm looking forward to a few more trades by the end of the year.
If you'd like to check out my private community for updates within my real options portfolio, check out the link below.
$75 profit in PG
Rewinding back to the beginning of the month, PG reported earnings and the market didn't like what they had to say, which sent the stock down 6%.
A movement of such large magnitude in stocks like PG is rare, so I jumped on the opportunity to sell a $155 cash-secured put expiring on Sep 20 for $150 in premium.
When blue chip stocks drop that much in a day, sometimes it's just a knee jerk reaction and the stock recovers quickly.
That proved to be the case, and my closing order got hit just two days later, where I paid $75 to close the position.
This means I locked in $75 in realized profits, or 50% of max profit.
My regret is not selling more than 1 contract!
Since I'm only sharing August's monthly review next week, I'm linking July's recap below, which details $353 in profit across 4 trades.
Closing thoughts & useful links
Just last week I said the market is feeling calm, just like it did last year before some volatility started coming back into the market.
Sure enough, here we are 7 days later with the SPY down 3.6% and the VIX back up to 22.38. Whether this is the beginning of an extended period of volatility of a quick rebound remains to be seen.
For me, I selectively entered a few positions this week, but I'm still waiting for more volatility before committing more.
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.