$90 profit in AAPL
Happy October! With volatility rising, it's been a tough couple of weeks for stocks and existing option positions. There are a couple of positions in the portfolio that aren't looking to good (one being the CLX position from last week), but as always, the goal is to make the best of the situation and always have a plan. This week:
$90 profit in Apple (AAPL)
New trade in Best Buy (BBY)
$90 profit in AAPL
This is a belated update because there have been just so many trades to update that it's kind of fallen off my radar, but back on Thursday, Sep 7, AAPL presented a good opportunity to enter a position, and I sold the $165 put expiring on Oct 13 for $170 in credit. Just 3 trading days later, on Sep 12, I paid $80 to close the position, locking in $90 (or about 53% of max profit).
This makes it 8 profitable trades out of 8 in AAPL so far in 2023, bringing in a total realised profit of $805 so far. It's not always exciting, but that's how profits and wealth are built - one trade at a time, with small amounts adding up.
New trade in BBY
While the increased volatility hasn't been great for existing trades, it's provided a decent environment for putting on new trades like this one in BBY. I sold the $67.50 cash-secured put expiring Oct 20 for $62.
As of Friday's close, BBY closed at $69.47, so the trade is just about $2 out of the money, however the put is trading for $75, which means there's an unrealised loss of $13 on the trade. As long as it remains above $67.50 though, it doesn't really matter what the premium is, because it would still expire worthless. This is something that trips some new traders up, thinking they need to take action once the current premium is more than what they received - this is not the case. As always, if you'd like to receive real-time alerts like the one above, you can consider signing up for my Bread Crumb subscription - more info at the link below.
Closing thoughts & useful links
There was a lot of noise this week with the whole will they/won't they have a shutdown issue - as always it's important to focus on what can be controlled, which is the strategy and how to manage positions, and to always have a plan.
Next week - profit roundup for September and news of an assignment in the account.
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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.