I just finished the previous post. And this is more of the same. I just finished typing about the Beyond Meat (BYND) option position I closed at a massive loss to free a bit of capital and establish a lower entry point if shares are distributed. Today I closed the position I just yesterday established in BYND and four other option positions. I found another $31,000 worth of liquidity and our cash position is roughly 16% of our portfolio. As market move significantly higher as Americans go to the polls on election day.
Holding the BYND contract netted $54.30 on $11,000 of capital or 0.5% - which isn’t very relevant annualized, but it’s crazy high. I’m still down over $500 between the BYND contract closed today and the BYND contract closed yesterday. But focus on the big picture, Beau: you’ve closed almost $19k in options profits this year. Not bad for a part-time job.
This past Friday I had entered into a Chewy put contract but closed it today when the market vaulted the online pet supply retailer higher. We netted just $33.61, but today I focused on liquidity and it was a 0.7% return on $5,000 over four days.
I also closed another Fastly (FSLY) contract today. The position in this contract had been established just a week ago – probably when I rolled a different FSLY contract into this one. I could look it up, but I lost a lot on that contract and scrapped up a few dollars on this one ($50.61 to be exact, so I guess that would by pizza for the fam).
I closed a Match.com put contract which I had held for 20 days – the strike was well under market and I paid $70.69 to close the position, but it was due to expire in 24 days and I had already made $133.61 on the position and it freed another $9,000 of capital. That’s a 1.5% return in less than three weeks. Note to self: write more MTCH contracts and fewer FSLY contracts.
I also closed the covered call position in Square (SQ) today. Though this move does not create liquidity in our portfolio, we don’t need to worry about an upside-surprise and have our shares called away – which would be taxed as regular income. Instead we took the profit, 10 days before expiration. The trade netted $134.30 and we can cheer for SQ to be wildly over-priced once more.