Happy weekend! This week:
$31 profit in Starbucks (SBUX)
$24 profit in Kroger (KR)
$31 profit in SBUX
Back on Sep 19, SBUX presented a nice opportunity to open a position which I took, selling the $90 cash-secured put expiring Oct 20 for $55. This turned out to be one of those trades that takes a long time to come in, with the trade only closing 4 days before expiration. Similar to what I said in last week's newsletter with the BBY position, it's important to understand where exactly one's trade stands before deciding a path of action to take. In this case, while SBUX did come close to the $90 put, it was never in the money and never triggered the signal to roll or otherwise adjust the position.
This makes it 17 wins in 17 trades in SBUX, with a total realised profit of $1,587 so far in 2023, which is a really good return so far. Even better when you consider that SBUX has been hovering around the $90-$100 price for the last few months, thus the required capital to put on this trade isn't too much, around $9,000 to $10,000, which is a very healthy ROI. If you'd like to read about previous trades and profits in SBUX, click on the link below to visit the archives.
$24 profit in KR
On Friday, Oct 6, I decided to sell a cash-secured put at the $40 strike, expiring Nov 17 for a credit of $43. On Tuesday, Oct 10, I closed the trade for $19. This locked in a realised profit of $24 or about 56% of max profit. A quick $24 profit for holding this trade for 3 trading days - I'll take it.
Similar to SBUX, that's 3 for 3 profitable trades in KR this year, with a total realised profit of $100. Again when you consider the lower price point of a stock like KR, it takes much less capital to put on one of these trades, which is great because it can consistently generate cashflow month after month. While this week looks like it's closing trades for “just” double digit profits - they all add up. I prefer to go for consistent wins than large wins followed by numerous losses - but to each their own. As always, if you'd like to take a peek into my own trades and receive real time updates (not recommendations) as to what I'm doing and how I'm looking to bring in these consistent wins, you can check out my Bread Crumb subscription below.
Closing thoughts & useful links
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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.