Mon., Nov. 8, 2021. How our fearless, intrepid investor made out last week and her plans for today

As promised, today, we report how our fearless, intrepid investor made out and what her plans for her “fun” portfolio are for this week.

In the week ending on Friday, October 22, she lost serious money selling 12 covered call  contracts on her Novavax (NVAX) holdings on Monday of that week (October 18). It amounted to a $30.44 per share loss.

Total loss? $36,528.00!! ($30.44 times 1,200)

In a recent post, we stated is that mistakes are practice shots. To succeed, make more mistakes. Forget the mistakes; remember the lessons.

On Monday, October 1, she sold 12 NVAX contracts, strike price $170.00, expiry date Friday, November 5 (C 05NOV21 170.00 (100). Her order was instantly filled. She received $5.18 per share premium income for a total of $6,216.00 (1,200 times $5.18). The $170.00 strike price was sufficiently out-of-the-money to allow for an additional $10.00 per share of growth, if it took place.

With the habits of the Monday Morning program, luck hardly matters. When selling derivatives, luck plays a huge role most of the time but not all the time.

Last week, she was not lucky; NVAX rose way above her $170.00 strike price to 170.00 for a few days but then, it tanked! The premium income of $6,216.00 cushioned her losses somewhat but regardless, she lost $7,910.69 last week which included some gains from the SPY shares she has in her “fun” portfolio.

And her plans when the market opens today at 9:30 AM?

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me