My QBTX Trade & How a Stock Split Turned Into a $925 Win

 Every once in a while, an options trade teaches you something new—even after years of trading. My recent QBTX trade did exactly that. What started as a single put sale turned into three separate contracts thanks to a stock split… and somehow it all worked out in my favor.

Here’s the full story.

---

📌 How It Started: Selling the $45 Put

Back on August 26, 2025, I opened what looked like a straightforward trade:

• QBTX 12/19/2025 Put @ $45

• Sold to Open

• Premium collected: $10.00

• Cash in hand: $999.95

QBTX had crazy high IV at the time, so selling premium made perfect sense. I honestly didn’t expect the trade to take any weird turns—but markets always find a way.

---

📉 Then QBTX Announced a 3-for-1 Stock Split

This is where things got interesting.

Because of the split:

• My 1 single put contract was automatically adjusted into
  3 contracts at a $15 strike

• The OCC handled everything behind the scenes

• My order history showed the changes as OCA / 3S entries

At first glance, it looked like some strange multi-leg order I didn’t place. Then I realized:

Oh… the stock split broke my contract into three.
Everything was still equivalent—the math just changed.

---

🔄 Closing the Three Contracts

Fast-forward to December 3, 2025, I decided to close out the trade.

Here’s what I paid to buy back the three $15 puts:

• $0.20 → $20.02

• $0.25 → $25.02

• $0.30 → $30.02

Total cost: $75.06

Pretty cheap considering the premium I originally collected.

---

💰 Final Profit (The Part That Actually Matters)

• Premium collected: $999.95

• Cost to close: –$75.06

⭐ Final Profit: $924.89 ⭐

Not bad at all for a trade that took an unexpected detour.

---

🎯 What I Learned from This Trade

• Stock splits aren’t a problem for option sellers—the OCC handles everything

• One contract can quietly turn into three, and it's completely normal

• As long as the math stays consistent, the premium stays yours

• In this case, the split actually helped me close everything cheaply

Honestly, this trade was a nice reminder that staying calm and understanding how adjustments work goes a long way. In the end, I walked away with nearly a thousand dollars on a position that morphed mid-way.

And I’ll definitely be keeping an eye on QBTX for future premium setups.

Reviewing Recent UNH & RDDT Trades

Healthcare is one of the few sectors that has proven its resilience time and again, and UnitedHealth Group (UNH) is a clear leader in this space. On May 16, 2025, I seized the opportunity and bought 100 shares of UNH at $293.25. But I didn't stop there—I decided to enhance my returns by writing a covered call with a $295 strike price, expiring on May 23, 2025.

The Setup: Why UNH?

UNH's strong financials and consistent growth make it a prime candidate for both long-term holding and options strategies. Given its stability and the broader market sentiment around healthcare, the $293.25 entry felt like a bargain—especially with earnings growth projections still strong.

The Covered Call Play

To maximize my returns, I wrote a call option with a $295 strike price. This move not only provided immediate income through the premium but also set me up for a potential exit at a slight profit if the stock gets called away. Here’s the breakdown:

• Purchase Price: $293.25

• Strike Price: $295

• Premium Collected: (To be updated after expiration)

If UNH closes above $295 at expiration, the shares get called away, and I lock in the difference plus the premium—a straightforward win. If it doesn’t, I keep the shares and the premium, ready to rinse and repeat.

Adding to the Momentum

In addition to the UNH covered call, I also executed two other trades in May 2025:

1. UNH $255 Put (Exp. 5/16/2025) – This trade locked in a solid $681 profit, capitalizing on short-term volatility.

2. RDDT $230 Call (Exp. 11/21/2025) – I closed this trade with a $160 profit, taking advantage of momentum in the tech sector.

Both trades contributed to a strong May performance, setting the stage for the covered call on my 100 UNH shares. These option moves are part of my broader strategy of layering option income with stock holdings to amplify returns.

Looking Ahead

This trade is part of my broader strategy to generate income through options while building equity in strong companies. If called away, I can always look for another entry point or deploy capital elsewhere. If not, I’m more than happy to hold UNH and continue writing calls.

My Options Trading story with SoundHound AI (SOUN)

 As an options trader, trying with minimum risk, I've learned that flexibility is the name of the game. My recent adventure with Sound Hound AI (SOUN) perfectly illustrates the art of adapting to market conditions and managing risk.I wanted to test the AI space .

The Strategy Unfolds

My approach with SOUN has been a classic wheel strategy:

• Started with selling put options
• Collected premiums consistently
• Got assigned shares when the put went in-the-money
• Transitioned to covered calls to generate additional income

Key Highlights

• Total premiums collected: $331
• Assigned at $20.62 per share
• Current strategy: Continuing to sell covered calls

The Numbers Tell a Story

Current position:

• Unrealized loss: $268.60
• Holding 100 shares
• Continuing to generate income through options

Lessons Learned

1. Market volatility is real
2. Premium collection can offset potential losses
3. Patience and strategy are crucial

The Road Ahead

While the current position shows a loss, I remain optimistic. The key is to:

• Continue strategic option selling
• Monitor the stock's performance
• Be ready to adjust strategy as needed