Week 2: $707 in Realized Options Gains (Plus My First Assignment Experience)
Weekly Options Trading Journal - Week 2 (June 9-13, 2025)
New here? Read Week 1 of my options trading journey to see how this all started.
The Week That Tested My Strategy
This week was a masterclass in both the rewards and risks of systematic options income trading. While I collected over $2,370 in net options premium across multiple positions, I also experienced my first significant assignment of the year when Lululemon (LULU) crashed through my put strike.
The result? A week that perfectly illustrates why options income trading requires both offensive strategy and defensive trade management.
By The Numbers: Week 2 Performance
The Trades: A Multi-Pronged Approach
The Weekly Income Strategy
June 13th Expiration Results
*Assignment creates $255.75 effective cost basis (after premium)
The Assignment: LULU Put Strategy
Here's where the week got interesting. I sold a $260 put on Lululemon for $424.32 in premium - a juicy 1.6% return for just 4 days.
The Risk: LULU dropped to $239.11 at expiration, forcing assignment of 100 shares at $260.
The Reality Check: While I'm now holding LULU shares with an unrealized loss of $1,664, my effective cost basis is $255.75 after the premium collected. This puts me in position to either sell covered calls against the shares or wait for a recovery.
The Complex Plays: CPRT and RDDT
CPRT (Copart): Built a sophisticated multi-leg position:
Bought 200 shares at $50.19
Sold calls and puts while hedging with long calls
Net options income: $134.84
Current status: Stock slightly underwater but options providing cushion
RDDT (Reddit): My most aggressive play - a short strangle generating $954.80 in total premium:
Sold 2 calls at $121 strike (rolled from $120)
Sold 1 put at $115 strike
With RDDT at $118.18, I'm perfectly positioned in the profit zone
Trade Management: The Real Edge
The difference between profitable options trading and gambling lies in active management. This week showcased three key techniques:
1. Rolling Winners
When my AMAT calls dropped to $0.02 on expiration day, I bought them back and immediately sold next week's calls for $1.62. This "roll for credit" generated an additional $104+ while maintaining the position.
2. Strategic Assignment
Rather than panic-closing the LULU put, I accepted assignment. With 100 shares now in hand, I can sell covered calls to reduce my cost basis over time.
3. Multi-Timeframe Positioning
While most positions expired weekly, my CPRT complex trades extend to July, providing longer-term income potential.
What's Working (And What Isn't)
Working:
Covered calls on existing positions: ASML generated $366 in pure options income
Short-term time decay: Weekly options provided excellent risk-adjusted returns
Active rolling: Extended profitable positions rather than letting them expire
Challenging:
Naked puts in volatile markets: LULU's sharp drop shows the assignment risk
Position sizing: Larger positions like RDDT strangle require careful monitoring
Current Portfolio: What I'm Watching
Current Open Positions: Week 3 Setup
Total Premium at Risk: $1,350.96
Risk Management Notes:
RDDT positions are well-positioned with stock at $118
AMAT covered calls should be safe with stock at $170
CPRT puts need monitoring if stock continues declining
Lessons From Week 2
Premium collection works: Even with one assignment, the week generated significant income
Quality underlying matter: My ASML and RDDT positions benefited from strong stocks
Trade management is crucial: Rolling and active management added hundreds in additional income
Assignments aren't failures: They're part of the strategy when you choose quality names
Looking Ahead
Next week brings another round of weekly expirations on June 20th. My focus will be:
Managing the RDDT strangle as it approaches expiration
Potential covered calls on my new LULU position
Monitoring CPRT for additional option opportunities
Identifying new weekly income positions for June 27th expiration
The goal remains consistent: generate 2-4% monthly returns through systematic options income while building positions in quality companies.
Total week impact: $2,370 in options income - $2,089 LULU assignment loss = +$281 net for the week.
This demonstrates both the income potential and assignment risks of systematic options trading.
Disclaimer: This is educational content documenting actual trades. Options trading involves significant risk and is not suitable for all investors. Always do your own research and consider your risk tolerance.