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

Options Trading Recap: SOUN and HOOD Trades

 On January 6, 2025, I executed three options trades involving SoundHound AI Inc. (SOUN) and Robinhood Markets Inc. (HOOD). Let's break down these trades and their outcomes.

SoundHound AI (SOUN) Trades

1. SOUN $24 Call (Expiration: 1/10/2025)

• Action: Sold call option
• Premium received: $96
• Outcome: Expired worthless, full premium captured

This trade worked out in my favor. The call option expired out of the money, allowing me to keep the entire premium without any obligation. This call was based on my previous put assignment 

2. SOUN $21 Put (Expiration: 1/10/2025)

• Action: Sold put option
• Premium received: $80
• Outcome: Assigned at $21, with share price at $14.09

This trade didn't go as planned. The significant drop in SOUN's share price led to assignment, resulting in a substantial loss. The total loss on this trade, accounting for the premium received, was $611.

Robinhood Markets (HOOD) Trade

3. HOOD $41 Put (Expiration: 1/10/2025)

• Action: Sold put option
• Premium received: $50
• Outcome: Assigned at $41, with share price at $40.08

This trade also resulted in assignment, but with a much smaller loss. After accounting for the premium received, the net loss on this trade was $42.This is one i was hoping to capture at lower prices.

Trade Analysis

My total premium income from these trades was $226. However, the losses from the assigned puts outweighed this income, resulting in a net loss of $427.The SOUN call option strategy worked well, but the put options on both SOUN and HOOD exposed me to downside risk that materialized. The significant drop in SOUN's share price was particularly impactful.

Looking Forward

As I move forward, it's crucial to reassess my risk management strategies, especially when selling put options on volatile stocks like SOUN. Recent news suggests that SOUN has been experiencing significant price movements, with a 63.12% increase in just one week prior to my trades. This volatility, while potentially profitable, also carries substantial risk.Additionally, insider selling activity at SOUN might be a signal to watch closely in future trades. As always, thorough research and careful consideration of market conditions are essential for successful options trading.Remember, options trading carries inherent risks, and past performance doesn't guarantee future results. Always conduct your own due diligence and consider your risk tolerance before entering any trades.

Analyzing My Options Trading: A Snapshot of HOOD and Soun Trades

 

Recent Trades Breakdown

December 30, 2024:

1. Sold $SOUN $21 Put 1/3

   • Option Premium: $62

   • Outcome: Got assigned; the share price was at $20.62

   • Analysis: This put was exercised, and I ended up holding the shares at an effective price of $20.62, minus the premium received. This brought my cost basis lower, which is beneficial if the stock appreciates.

2. Sold $HOOD $37 Put 1/3

   • Option Premium: $57

   • Outcome: Expired worthless

   • Analysis: Success! This option expired worthless, and I captured the premium without having to purchase the stock. The stock price remained above $37, making it a profitable trade.

3. Sold $SOUN $19.5 Put 1/3

   • Option Premium: $64

   • Outcome: Expired worthless

   • Analysis: Another win! The stock price stayed above $19.5, and I pocketed the premium without having to buy shares.

January 6, 2025:

1. Sold $SOUN $24 Call 1/10

   • Option Premium: $96

   • Analysis: This covered call strategy is a great way to generate income. If the stock price goes above $24, I'll sell the shares at $24, locking in potential gains if the share price is higher.This is from the earlier put assignment

2. Sold $SOUN $21 Put 1/10

   • Option Premium: $80

   • Analysis: Similar to previous put sales, I earn premium income. I'll need to buy the stock if it falls below $21 by the expiration date.

3. Sold $HOOD $41 Put 1/10

   • Option Premium: $50

   • Analysis: Another premium-earning put sale. If the stock price falls below $41, I'll need to purchase shares at that price.

My Core Strategy: Cash-Secured Puts Rolled into Covered Calls

Most of my trades revolve around selling cash-secured puts. If these puts get assigned, I then roll them into covered calls. Here's how it works:

1. Cash-Secured Puts:

   • I sell put options secured by enough cash to buy the underlying stock if assigned.

   • If the stock price stays above the strike price, I keep the premium.

   • If the stock price falls below the strike price, I buy the stock at the strike price, effectively getting it at a discount (strike price minus the premium received).

2. Covered Calls:

   • If I'm assigned the stock from the cash-secured put, I sell covered calls on those shares.

   • This generates additional premium income while setting a target selling price for the stock.

   • If the stock price rises above the call strike price, I sell the stock at that price, capturing gains plus the premium.

Benefits of This Strategy

• Income Generation: Earn premiums from both the put and call options, providing a steady stream of income.

• Downside Protection: The premiums received from selling puts and calls help offset potential losses.

• Flexibility: If the stock doesn't get assigned, I can sell puts again. If assigned, I can continue generating income through covered calls.

• Reduced Cost Basis: The premiums received lower my effective cost basis, making it easier to achieve profitability.

Weekly Dividend Boost: GILD,LMT,SHEL,VOO

Dividends are more than just periodic payouts; they can significantly enhance your investment returns when reinvested wisely. Let’s review my recent dividend activity and reinvestment strategy for the week of December 23rd to December 30th, 2024.

December Dividend Highlights:

Gilead Sciences (GILD):

• Dividend Received: On December 30, 2024, I received a $46.12 dividend from Gilead Sciences.

• Reinvestment: I promptly reinvested this amount into additional shares of Gilead Sciences, leveraging the compounding effect.

Lockheed Martin (LMT):

• Dividend Received: On December 27, 2024, I received a $90.21 dividend from Lockheed Martin.

• Reinvestment: This dividend was reinvested to acquire more shares of Lockheed Martin, further boosting my portfolio.

Shell PLC (SHEL):

• Dividend Received: On December 23, 2024, I received a $46.69 dividend from Shell PLC, effective as of December 19, 2024.

• Reinvestment: I reinvested this dividend to increase my holdings in Shell PLC.

VOO:

• Dividend Received: On December 27, 2024, I received a 9.1 dividend from VOO.

• Reinvestment: This amount was reinvested into additional units of VOO, diversifying my portfolio and capitalizing on the broad market index's stability and growth potential.

Why Reinvestment Works:

Reinvesting dividends is a powerful strategy for long-term investors. By using dividends to purchase additional shares, you can generate more returns, creating a snowball effect that fuels exponential growth over time. This strategy not only enhances your portfolio's performance but also maximizes the potential of your investments.

Conclusion:

The dividends received and reinvested from Gilead Sciences, Lockheed Martin, Shell PLC, and VOO during this week exemplify the effectiveness of this strategy. Each reinvestment contributes to the growth of my portfolio, ensuring that every dollar earned is put back to work. Remember, the key to successful investing is not just earning returns but reinvesting those returns to maintain growth momentum.

Happy investing, and may your dividends always be plentiful!

Exploring Options: My Latest options Trades in SOUN and HOOD Stocks

 As 2024 wraps up, I wanted to share some of my  most recent options trading activity. It's been an Interesting year, 

The Trades:

1. Sell $SOUN $17.5 Put Exp 12/27

   • Option Premium: $45

   • Rationale: I anticipated that SOUN, a tech stock with a knack for rebounding, would stay above $17.5. The $45 premium was an attractive reward for the risk involved.

2. Sell $SOUN $18.5 Put Exp 12/27

   • Option Premium: $68

   • Rationale: Doubling down on SOUN, I believed that its strong market position would prevent it from dipping below $18.5. The higher premium of $68 reflected a more substantial risk, but one I felt confident taking.

3. Sell $HOOD $36 Put Exp 12/27

   • Option Premium: $46

   • Rationale: With Robinhood (HOOD) showing steady growth, I predicted it would maintain its value above $36. The $46 premium added a nice cushion to my portfolio.

 For HOOD, its consistent performance and user base growth provided a solid foundation for my decision and i would like  to own them.

Looking Ahead:

As we approach the new year, I plan to continue refining my strategies, learning from each trade, and staying nimble in an ever-changing market landscape. Options trading is a journey of continuous learning, and I'm excited to see what 2025 holds.

Happy trading, everyone! Let's keep pushing boundaries and exploring new opportunities together. 🚀

I hope you found this little glimpse into my trading world interesting! If you have any questions or want to share your own trading experiences, feel free to drop a comment below. Let's learn and grow together! 

Options Update --$SOUN,$HOOD,#ACHR

 The past week brought a satisfying conclusion to a series of carefully selected options trades. With all positions expiring worthless, I retained the full premiums, showcasing the power of risk-managed options trading. Here's a breakdown of my trades:

• 12/9/2024: Sold $SOUN $14 PUT (exp. 12/20/2024) for $50.
• 12/10/2024: Sold $HOOD $38 PUT (exp. 12/20/2024) for $84.
• 12/12/2024: Sold $ACHR $7.5 PUT (exp. 12/20/2024) for $25.
• 12/16/2024: Sold $SOUN $16 PUT (exp. 12/20/2024) for $86.

Total premium collected: $245 🎉

I was interested in Owning HOOD @ 34 or cheaper .I sold a covered call long time when $HOOD was in 7 bucks and  trying to recapture those trades.

How are your trades going?

Riding the Dividend Wave: Strong Increases Across My Portfolio with MA, AVGO, BMY, AMGN, and O

 Here are the recent dividend increases for several companies:

1. Mastercard (MA)

   • New Dividend: $0.76 per share
   • Previous Dividend: $0.66 per share
   • Increase: 15.15%
   • Dividend Yield: 0.57%
   • Ex-Dividend Date: February 7, 2025
   • Payable Date: February 21, 2025

2. Broadcom (AVGO)

   • New Dividend: $0.59 per share
   • Previous Dividend: $0.59 per share
   • Increase: 8.70%
   • Dividend Yield: 2.10%
   • Ex-Dividend Date: December 19, 2024
   • Payable Date: December 29, 2024

3. Bristol-Myers Squibb (BMY)

   • New Dividend: $0.62 per share
   • Previous Dividend: $0.57 per share
   • Increase: 8.77%
   • Dividend Yield: 4.35%
   • Ex-Dividend Date: January 3, 2025
   • Payable Date: February 1, 2025

4. Amgen (AMGN)

   • New Dividend: $2.37 per share
   • Previous Dividend: $2.13 per share
   • Increase: 11.27%
   • Dividend Yield: 2.87%
   • Ex-Dividend Date: February 14, 2025
   • Payable Date: March 8, 2025

5. Realty Income (O)

   • New Dividend: $0.2555 per share (monthly)
   • Previous Dividend: $0.2545 per share (monthly)
   • Increase: 0.39%
   • Dividend Yield: 6.20%
   • Ex-Dividend Date: January 2, 2025
   • Payable Date: January 16, 2025

These companies are showing strong dividend increases, which could contribute positively to your portfolio's overall yield. Let me know if you want to dive deeper into any of these or need further analysis!

Key Takeaways

• Diverse Opportunities: The analyzed companies span sectors from financial services to real estate, showcasing opportunities across industries.

• Compelling Yields: While Realty Income and Bristol-Myers Squibb offer high yields for immediate income, Mastercard and Amgen focus on growth.