$97 profit in SBUX & TXN
$55 profit in Texas Instruments (TXN)
$42 profit in Starbucks (SBUX)
$55 profit in TXN
Last week I shared this new position in TXN, where I sold the $145 cash-secured put expiring Jun 16 for $105 When I updated the trade it was sitting at about 30% of max profit, this week it reached 52% of max profit and the trade got taken off.
Even though TXN has moved roughly sideways since this trade got put on, time decay is still working in my favour and sucking the extrinsic value out of the position. This is why selling options is a great way to generate income, because you don't necessarily need the market to move in a certain direction to make money (although of course it helps). The screenshot you're seeing is from my private community where I share my real trades within my portfolio - from the point they're opened through managing any rolls to eventual closure and profit. If you're somewhat familiar with options and would be interested in getting updates on my positions and trades, check out my Bread Crumb subscription below.
$42 profit in SBUX
Back on 3 May I sold a put option at the $97.50 strike in SBUX, expiring Jun 16 for $82 initial credit. Just about 2 weeks later the trade closed to realise $42, or just about 51% of max profit.
Similar to the TXN trade above, SBUX's stock price didn't actually move that much, but time decay kicked in, leading to a drop in extrinsic value and eventually being able to close the position for a profit. SBUX has been a great performer in my portfolio with $787 in realised profits across 8 trades so far in 2023. Definitely hoping for this trend to continue.
That's it for this week - my JNJ position did not come to a close this week, I'll have an update for you in next week's newsletter.
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.