Zero To Hero Challenge Ep 29: A Major Change (AMC)

Determination is the most important skill to hone as a trader. Determination to find your edge, to be patient and find profit. Most people simply lack persistence and consistency when it comes to the long haul.

If you can overcome this hurdle in life you can overcome anything. Getting back up when you fall down, over and over again.

This month I was able to claw my way back up through time tested options strategies. Buying equities, writing covered calls and guaranteeing profits on those shares. First I was able to ride BKKT to my $1.50 covered calls which guaranteed me $150 x 200 shares over the weekend.

Since Bakkt Holdings surged last week to close above $1.70 I was called away on the two contracts I wrote and sold. These guaranteed me $150 per 100 shares plus the premiums I collected. I was happy with the trade since it left me with cash to spend this going into this week.

I used this cash to buy 100 shares of AMC after the news broke where the company is nearing a settlement over their APE shares converting to regular AMC shares. I then used these shares to write one contract where I collected $21 in premiums.

My cost basis for the AMC shares is around $3.75 and I wrote a $4.50 call expiring next week. This netted me $21 so my cost basis is now $3.54 per shares and my breakeven price is $4.71 if AMC surges in value.

So far the contract decay is about $1.80 per day which is value I am banking since I wrote and sold the contract.

I will be updating the blog once something interesting happens!