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$282 profit in SMH & JNJ

Writer's picture: themoneyloafthemoneyloaf
Dec 12, 2024

Updated: Jan 1

Happy weekend!

 

I just wanna start by saying thanks for the insane support for my options course - it sold out in just 10 hours! It took 16 hours for the previous course, so I'm grateful that so many people still interested and determined to create a new income stream for themselves in 2025. 

 

I'm sorry not everyone could get a space, but please look out for the next batch likely in the middle of 2025. 

 

This week:

  1. $192 profit in SMH

  2. $90 profit in Johnson & Johnson (JNJ)


 

$192 profit in SMH


In November, AMD reported their earnings and the market didn't like what they had to say. Regardless of how any one individual company is doing, there's no denying that as a whole there's a demand for chips because of AI. 

 

I didn't want to get specific exposure in any company, so I decided to open a position in SMH (the ETF that tracks semiconductors) instead. 

 

I sold a cash-secured put at the $215 strike expiring Dec 20 and received $293 in premium up front. 

 

Just 8 trading days later the market realized that it was overreacting to AMD's earnings and the put option hit $100 and so I bought it back. 

 

Total realized profit on the trade was $192 (or about 66% of max profit). 


smh-option-profits

I've been pretty active in SMH this year with $1,828 realized profits coming from 9 wins in 9 trades. 

 

There's no denying that the AI craze is real, and I'm happy to participate in the sector via this particular ETF. 

 

As always, all these trades are shared as updates to my private community just to share my own strategy and approach to managing my portfolio, if you'd like to check out my private community for updates within my real options portfolio (not trade recommendations), check out the link below. 



 

$90 profit in JNJ


The second trade was also a straightforward in JNJ. 

 

The opportunity arose to sell the $150 cash-secured put expiring Dec 20 for $175. 

 

Just over 2 weeks later the option price dropped to $85, which roughly around my usual profit level, so I decided to take profits. 

 

Total realized profit = $90 (51% of max profit) 


jnj-options-profit

JNJ has also appeared frequently in this portfolio, with 7 wins in 7 trades and a realized profit of $724. 

 

You can read about previous positions that have been tracked and shared on my blog at the link below. 



 

Closing thoughts & useful links


The S&P 500 closed at record highs (again) on Friday - its 57th of the year, which is just crazy. 

 

Even so, there are very selective opportunities in some stocks, but I'm still wary of over-committing capital at record highs. 

 

Will we see even more highs with a Santa rally? One way to find out!

 

Have a good weekend!


 

 

  • Improve your financial life with my budget and wealth tracker that helps to allocate your budget, calculate savings rate, track your sinking funds, net worth and progresses towards FIRE with minimal input from you - most of it is automated. 

 

 

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.

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