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Option Follow Up & New Buys

I feel like transparency is important when attempting to gain trust. If I share a buy of share/options on the blog, I intend to follow that up regularly to show gains and losses. There are, and will be losses along the way. The long-term goal is to negate the losses as much as possible, but at the end of the day, companies will always take sudden turns or crash before you can escape. Keep in mind, I plan on holding these calls for a fairly long-period of time if necessary, so there may be fairly no change in prices yet.

 

Follow Up Buys ---> If you did not see the original Blog, check it out HERE.


1. Western Asset Mortgage Capital (WMC)


Original Purchase Date - Jan 7th, 2021

Option Strategy - Long Call

Option Expiration Date - 1/20/2023

Strike Price - $7.5

Maximum Loss - I bought 8 contracts at $0.24 each, 8 x $24 = $192. I was fairly lucky here, I put the price I was willing to pay per contract, the "bid," at $0.30 ($0.30 x 100 = $30 per contract), but it filled at (Someone sold it to me) $0.24 each.


Once you've purchased a call, it will show up on your main page, in a separate area from the stocks you hold. Click on the Option and it will take you to the information page for that specific call.


UPDATE

These calls are currently priced at $0.30 per contract. and I'm still holding all 8. This trade has a current unrealized gain (Amount of gain you could possibly have if you were to sell now), or "total return," of $48, or 25%. This page has a lot of important information, I'd like to briefly explain each section:


Amount - How many contract I currently own.

Equity - The total amount if I were to sell all 8 contracts at $0.30 each, 8 x $30 = $240.

WMC Break Even Price - $7.74 - The Break Even price would be the required Stock Price for you to "break even" on the trade if you were to exercise these contracts and buy the shares. I do not plan on exercising this contract, so this number is irrelevant at this time.

Exp Date - 1/20/2023 - This is the expiration date of these contracts, I have up until this date for shares in WMC to climb in price, that's 734 days away.

Current Price - $0.30 - Remember, this is $0.30 x 100 = $30 each. This number times our contract gives us our Equity (Amount of Contracts x Current Price = Equity)

Avg Cost - $0.24 - What I originally paid per contract.

Bid - What someone is openly willing to buy these contracts for.

Ask - What someone is openly willing to sell these contracts for.


2. Electrameccanica Vehicles(SOLO)


Original Purchase Date - Jan 3rd, 2021 Options, Jan 7th, 2021 Shares

Shares - I bought 100 shares at $6.98 each, $698 total.

Option Strategy - Bull Call Debit Spread

Option Expiration Date - 1/21/2022

Buy Call Strike Price - $10 ($2.49 each)

Sell Call Strike Price - $20 ($1.59 each)

Spread Total - $2.59 - $1.59 = $0.90.

Maximum Loss - I bought 2 spreads, 2 x $90 = $180.


Update

Currently, shares of SOLO are $7.55 each, making my 100 shares worth $755, an unrealized gain $57.12.

The two spreads are currently worth $1.06 each, 2 x $106 = $212, an unrealized gain of $32, or 17.78%.


3. Nokia(NOK)


Original Purchase Date - Jan 5th, 2021

Option Strategy - Long Call

Option Expiration Date - 1/21/2022

Strike Price - $4

Maximum Loss - I bought 16 contracts at $0.68 each, 16 x $68 = $1088.

Update

I am still holding all 16 of these contracts, they are currently worth $0.83 per contract. This is a current unrealized gain of $240, or 22.06%.


4. Blackberry(BB)


Original Purchase Date - Jan 5th, 2021

Option Strategy - Bull Call Debit Spread

Option Expiration Date - 1/21/2022

Buy Call Strike Price - $7.5 ($1.72 each)

Sell Call Strike Price - $15 ($0.55 each)

Spread Total - $1.72 - $0.55 = $1.17

Maximum Loss - I bought 8 spreads, 8 x $117 = $936. These also filled slightly lower than my $1.20 bid.


Update

I am still holding all 8 of these spreads, they are currently worth $1.72 each. This is a current unrealized gain of $440, or 47.01%.


5. Ideanomics(IDEX)


Original Purchase Date - Dec 29th, 2020 Options and Jan 5th, 2021 Shares

Shares - I currently own 600 shares at an average of $2.18 per share.

Option Strategy - Bull Call Debit Spread

Option Expiration Date - 1/21/2023

Buy Call Strike Price - $0.5 ($1.97 each)

Sell Call Strike Price - $7 ($1.22 each)

Spread Total - $1.97 - $1.22 = $0.75

Maximum Loss - I bought 8 spreads, 8 x $75 = $600.


Update

I am still holding the 600 shares at the current price of $3.11, an unrealized gain of $557.76.

I am also still holding all 8 spreads, which are currently valued at $584, an unrealized loss of $16, or 2.67%.


Total unrealized gains from these trades as of Jan 15th, 2021 is $1,301.76.


New Buys


6. MultiPlan (MPLN)


MPLN is a healthcare cost management solutions company that supports companies with pricing and paying. They were a private company from 1980 until last year.


Original Purchase Date - Jan 15th, 2021

Shares - None at this time.

Option Strategy - Calls

Option Expiration Date - 1/21/2022

Buy Call Strike Price - $17.50 ($0.60 each)

Maximum Loss - I bought 9 call options at $0.60 each, 9 x $60 = $540.

The Plan - MPLN has a lot of opportunity to continue growing their business and they support some of the largest hospital groups. I feel that this company is undervalued, especially after its initial drop shortly after it's merger with the blank check company, Churchhill Capital III.


7. Pfizer (PFE)


Everyone knows Pfizer at this point. First to market with a vaccine and, even with the dependence on super cold temperatures fore storage, I feel that PFE will still see a large revenue increase on their next Earnings date. I went against my usual plan of 6 or more months on this one, which in my opinion, greatly increases the likelihood of the calls ending worthless, or being sold for a loss.


Original Purchase Date - Jan 15th, 2021

Shares - None at this time.

Option Strategy - Bull Call Debit Spreads

Option Expiration Date - 3/19/2021

Buy Call Strike Price - $38 ($1.02 each)

Sell Call Strike Price - $55 ($0.09 each)

Spread Total - $1.02 - $0.09 = $0.93

Maximum Loss - I bought 13 spread options at $0.93 each, 13 x $93 = $1209.

The Plan - This is a much shorter term call than I typically buy. I am playing the volatility of PFE over the next 2 months, and I think it will be far higher than $38 a share, but I doubt it will go over $55 a share. Ideally, I will sell these spreads on good news with at least a month left on the expiration. That gives me about a month before the expiration gets too close, and that's when you will see value drop dramatically if you did not get the growth you expected.


Please leave a comment if you have any questions, or join the Groups and let me know there!


Thanks for Reading,


Kevin Parker

Retail Trader

Dreamer of Financial Freedom

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