This week:
$39 profit in Best Buy
New position in Dicks Sporting Goods
$39 profit in BBY
This trade was actually put on last week, but I didn't have space for it in the newsletter (that's why the screenshot below says 9 days ago). I sold the $70 put expiring 20 Jan for $77, and it closed for 50% of max profit. Actually I sold 2 puts, I'm leaving the other one to run for a bit more.
I was curious how BBY has performed for the portfolio and surprisingly it's been doing well. 8 trades have been closed for realised profits of $1,645 across both my accounts. Here's the screenshot in Tastyworks (my ‘public’ account).
$950 in realised gains over 12 months with only $9 in commissions isn't too bad. Also considering that BBY is a lower-priced underlying, if I were to be assigned 100 shares at $70, that's $7,000. But the $1,645 gives me an instant 24% off! You can see how repeating the process over many trades and a few years can basically lead to owning 100 shares in great companies for free.
New trade in DKS
In this week's live session on Thursday I took the opportunity to sell a new put option in DKS. I sold the $95 put expiring 20 Jan for $110 in premium. It's currently trading at $77, for a $33 unrealised gain.
DKS has also been profitable in 2022 - 6 trades were closed previously for a total profit of $1,225, this will be trade #7. It's a little more conservative than usual - I was going back and forth between the $95 and $100 put strike, but ultimately with volatility so low, I didn't feel like it was the time to be too aggressive with my strikes. This enables me to keep my position size small and keep more capital in reserve to be ready for any opportunities when volatility eventually expands again.
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.