This Is How Much I Made On SLV Call Options

This Is How Much I Made On SLV Call Options
This photo is current as of 8/25/2020

In today’s post, I am going to talk about how much I made on SLV call options. I have barely started getting into learning about call/put options and want to update you on my journey. If you know someone that could benefit from reading today’s post then please send it.

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Side note: These trades were made last month and therefore are past gains that I made. I will state otherwise if the trades are recent.

What is SLV ?

SLV, or iShares Silver Trust is a commodities ETF that tracks silver spot price. It’s a suggested stock to add for your portfolio since it tracks the day to day price of silver (according to their website).

Why Did I Choose This ETF?

When reading a post on Reddit, I came across a post that showed the earning this person was making through call options. I decided to do more research on the ETF and read a lot about how silver was starting to rally. I then concluded that maybe I could possibly make some money with some long option calls.

What Were My Positions?

I decided to buy 2 call option contracts at $0.08 which came out to be a total of $16.00. The next call option that I decided to buy was 1 contract at $0.01 (which came out to be $1).

How Much Did I Sell My Contracts For?

For the 2 contracts at $0.08, I was able to sell them at $0.35 a piece. The total sell was $70 and I profited $54. My second sell was valued at $0.36 per contract. I made a profit of $35, but I should’ve bought way more! I was initially going to buy 30 contracts at $0.01 but decided not to and buy something else. I would’ve made $1,050 in profit from that call option.

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My Thoughts On Option Trading

When doing option calls/put, you need to not always be wondering about the “What If” question. The whole point of options trading (my opinion) is selling the premium of a contract that has a decent profit. To put it into plain terms, If your option contract has a return percentage of 50% then you need to sell for profit. I say need because while it can go up a whole lot more, it could also drop as well. Plus, 50% profit is really good, and having multiple contracts helps add to your gains.

Should I buy SLV Right Now?

I feel that it is still a good time to buy some contracts on SLV and make some decent money with call options. Make sure that the date you choose to buy the contracts are not within the same month or a week before expiration. The risks are a lot higher for the contract to drop. Aim for a month, 2 months, or further.

I also try to find contracts that are in the red because they tend to be cheap for a brief second before going up a week after purchase. If in the green, I still will buy contracts that cost $0.10-$0.20. If at $0.01-0.09 I will purchase multiple shares.

Your free stock is waiting for you! Join Robinhood and we’ll both get a stock like Apple, Ford, or Facebook for free. Sign up with my link HERE

Closing

I hope that reading This Is How Much I Made On SLV Call Options will motivate you to learn more about investing and the power of option trading. Don’t be fooled though because it is basically gambling. You’re just not giving money to a casino. Everything that I have talked about is true and not some gambit. I am not trying to sell you anything!

Even though the profits that I made might not be appealing to some who are hoping to huge gains, I still made a profit and that is always a win in the end. Don’t worry though, I have made more money on trades from SLV and other stocks. I will be breaking these types of posts into multiple parts. So please stay tuned if you are starting to find options trading really interesting

Also, I am not a professional and everything you do is at your own risk.

Send this post to a friend and could also benefit from the reading! Thanks for supporting The Finance Starter and below will be other post I recommend.

Your free stock is waiting for you! Join Robinhood and we’ll both get a stock like Apple, Ford, or Facebook for free. Sign up with my link HERE

Yes I would like you to join Robinhood so that we both can get stocks and pray that we get Apple. Seriously though, if you want to start investing then I suggest Robinhood.

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