Happy weekend!
Stocks rallied (again) with the S&P 500 closing above 5,000 on Friday.
This means profits! Specifically a double dip with 2 profitable trades in SBUX.
This week:
$212 profit in Starbucks (SBUX)
$27 profit in Starbucks (SBUX)
$212 profit in SBUX
Just a few weeks ago I shared an update in my SBUX position that had to be rolled for a total of $312 premium.
SBUX ended up rallying after earnings, which gave me the opportunity to pay $100 to close the position.
This means bringing in a realized profit of $212, or 68% of max profit.
This $212 profit also more than covers the monthly Bread Crumb subscription - which you can read about below.
$27 profit in SBUX
Shortly after the trade above closed, another opportunity presented itself in SBUX, this time I sold the Mar 8 $85 cash-secured put for $40.
A mere 3 trading days later, this position was worth $13.
With another 30 days to go before expiration, it doesn't make sense to try to squeeze $13 out of the trade.
Think about it this way - the trade made 68% of max profit in 3 days, why risk profits for the remaining 30 plus days in the trade?
This was also the 2nd (of 3) profitable trades that have been closed since my January options course started. Profits from these 3 trades would already cover 25% of the course fees.
Even though it was “only” $27 profit, repeated over tens and hundreds of trades, it adds up.
If you've been subscribed to the newsletter for a while you'll know SBUX has been a great performer over the last few years.
In 2023, I closed 18 out of 18 trades for total realized profit of $1,725.
In 2024, the year is starting strong with 3 wins out of 3 trades for $448 realized profit.
You can read about previous SBUX trades at the link below.
Closing thoughts & useful links
The S&P 500 hit a new all-time high on Friday (again).
Earnings season is mostly out of the way, so we're back to waiting for some external catalyst to move the market one way or another. I'll be hoping for movement to the downside so we get some volatility back in the market.
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.