Progress is continuing in this journey of growing a $10,000 account using options trading. I made a trade that is a little different from what I would normally do, but it seemed to be the best thing to reach my goal for the week as you’ll see. The nice thing with options is there are so many different variations and directions you can take. Learning these various strategies will help you in your own journey with trading options.

Week 9 Results

The week started out on Monday with the SERV Put that we had rolled out. We also had the MSTU put that I had sold at the beginning of last week:

The price of MSTU had gone down to around $7 on Monday, but I decided to wait and see if the share price came back up during the week. The share price of SERV was also down, but I still had quite a bit of time before the 7/18 expiration for that to hopefully come up some also. On Monday I opened a new position by selling a put on NMAX with a strike of $12 and an expiration of 7/3 (10 DTE). For this I was able to collect a $60 premium which was a good start to the week.

When Friday arrived I was happy to see that the share price of MSTU had come back up above my strike price a little. It was hovering just a little above $8. I knew that there was risk of the price dropping below my strike by the end of the day, but I decided to leave it and hope that the price stayed above my strike. I knew that if I got assigned on the shares it wouldn’t be the end of the world as I would just sell a call on the shares.

With MSTU I could have rolled it out for another week to the same strike price for a credit. Another option I had was to roll it out two weeks and roll the strike price down to $7.50 and still get a small credit. The share price did end up dropping a little by the end of the day and I was assigned on the shares. The share price ended up at $7.87 so hopefully when the market opens on Monday morning the share price will have gone up some or at least stayed close to where it is so I can get a decent premium for selling a call.

The other move I made on Friday to generate the rest of my premium for the week was to roll my NMAX put up to a strike price of $13 for a credit of an additional $25. I left the expiration date the same. The reason I was able to do this was that over the week the share price of NMAX had risen quite a bit. This isn’t the type of trade I would typically do, but it worked as I didn’t have to increase my use of collateral much to get the additional $25 to reach my goal for premiums for the week.

Summary

Between my two NMAX trades I was able to bring in a total of $84.92 in premiums for the week. I currently have $2,500 of my account cash committed as collateral for the two open put positions and I’ve used $800 of my cash to buy 100 shares of MSTU.

For the 1st 9 weeks of this journey I’ve collected total net premiums of $662.04. My target based on my goal for premiums is $647.92.

Here is a snapshot of the account. You’ll see that the MSTU put is still showing but that will update by Monday morning when Firstrade updates the assigned put and it will show the shares.

Here is a link to the article with our detailed strategy we use in generating consistent returns through options trading:

Read: How to Generate Consistent Returns Through Options Trading