A quiet week in the market, which means not much happened within the portfolio. However I did still close an ABBV trade for $42 - let's get into it.
$42 profit in Abbvie (ABBV)
$42 profit in ABBV
Roughly 2 weeks ago on June 20, I sold a $130 cash-secured put in ABBV expiring Jul 21 for $1.02 This particular trade wasn't exactly smooth sailing, so as we started to get closer to expiration, I wanted to look at locking in profits, even if it meant settling for a smaller profit than usual. I moved my closing order up from $0.50 to $0.60, which was hit on Wednesday, resulting in a realised profit of $42, or (only) 41% of max profit.
A few people in the Bread Crumb subscription also entered the same trade, but they waited for a little bit more profit and closed their trades for $63 and $91, or 62% and 89% profit respectively.
The beauty of selling options in the specific system I teach, is that although the strategy is the same, the execution can be tailored to fit each person's individual risk profile and preferences. For myself, I'm a little bit more conservative with this “public” profile, just because I don't want to run the risk of getting assigned on too many positions, which would affect the overall capital I would have available to trade. In this specific case, I have the exact trade still on in my personal portfolio :D If you're somewhat familiar with options and would like to receive my trade updates in real time (which are not trade recommendations), check out the link below to find out how to join the Bread Crumb subscription.
That's it for this week - unfortunately non-farm payrolls didn't do much to jolt the market on Friday. The CPI reading is going to be released next week, let's see if that will introduce some volatility into the market.
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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.