This week, I closed out 2 policies. Lam Research $LRCX ( ▲ 2.63% ) closed in 4 days at a 7.15% return. I risked $438.33 and made $31.35 when I closed with 50% of the premium. I really liked this deal because I had a 24% cushion between the stock price and the price I guaranteed.
The stock was ~$258 when I wrote the policy, and the spread was $195/$190. When I closed the deal, Lam Research was ~$278.
I’ll take these types of deals all day. Less return but less risk. Even if the deal stretched to 30 days, I’d still be happy with a 7.15% return. My savings account pays less.
Remember. Be careful with the $5 wide spreads. They’re dangerous. Demand a large cushion.
The Intel $INTC ( ▲ 13.96% ) policy closed in 7 days at a 12.72% return. I risked $199.33 and collected $25.35. The cushion for Intel was good too, 21%, and the spread was $77.5/$75.
I’m cautious on Intel because it’s rising fast on momentum. Once the momentum stops, it can quickly drop below my strike price. Be conservative with the Intel policies. I can’t take another loss like I did with that criminal enterprise.
Total: I risked $637.66 and made $56.70. A total return of 8.89%.
God said whoever gathers little by little will increase it. I’m holding on to that word. I tried gathering quickly, and it burned me bad. Real bad.
With God, all things are possible.
I need to pray for Stefon Diggs and Jamila Adams. Hopefully their situation brings them closer to Jesus.
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