Did I make $2000 trading Zillow stock?
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Did I make $2000 trading Zillow stock?


hello and welcome back to taking trades my name is Jimmy and today we’re talking about Zillow I want to know if you think I got the trade or if I missed the trade comment below real quick let me know if you think I missed it or got it say Jimmy I think you missed it or Jimmy I think you nailed it comment below real quick we’ll continue on in three two one yeah of course I bought it I got a great entry on Zillow it was at a key level I’m gonna show you the entry on that stock today talk about why I like it I did write a covered call so I’m gonna go over the specifics of that today and I’m going to show you my strike price or where I think the stock is going to go so we’ll get into that as well as a few other things today and also if you want to continue your growth in the stock market as well as see all of my trades consider hitting that subscribe button and turning on your bell notification so you get all my videos as soon as I upload let’s jump into things alright let’s talk about what happened today so here is Zillow up on the daily chart and the reason I’ve been watching Zillow recently is because it had this level over here that it got rejected from a while back and then it slowly worked its way back up and you can see that it tried to cross here but then it got rejected one more time and then it had a big explosion beyond it so once that big explosion happened it told me that we do have a support level here and now let’s see if it gets tested and holds up so when it came back and held right here I was watching that saying good that’s showing that things are still moving kind of in a bullish direction then it pushed back up and came down again and then it tests it again here you can see it slept behind but then pulled right back up in and then came back up to the top and so we created sort of a few other touches creating sort of a simple or small range right in here once it broke above well then we blew past this level right in here so that got me interested in ok are we going to come back down and tup and tap this level and then continue moving higher so my one concern on this was that I wanted this 50 moving average to be sort of close to the price action I wanted it to maybe come back down get a close touch and then go higher and what happened was today as I was watching this you can see we were just setting up really nicely on this new support level and for a minute I thought well maybe it’s gonna break below and travel back down maybe kind of in the 4550 area and then go back to the long side but it started showing a little upside strength and holding really well at the support level so I decided to go ahead and take a purchase buy this stock and right bird calls on it so I want to take you over to that real quick and show you exactly what I do when I take a covered call so I came in here to the options chain and this is on thinkorswim you just go to the trade tab we were over in the charts and now I just go over to trade and what I did was I went to the August 16th expiration date and I opened that up and on the call side not the put side but over here on the calls I looked down in here and I said okay what could I get for a premium how many shares should I buy and where do I think the stock is going to go meaning the strike price so when I looked at the chart I said well if we if I enter here there’s a strong possibility that it could over the next you know three to four weeks travel back up close to 51 maybe over 50 so let’s see what we can get in terms of a premium and ultimately I settled in on the 4950 strike and I’m gonna go ahead and draw that in just so it’s really clear for everyone to see so be the 4950 I’m just gonna draw a quick line here and then edit it and at 4950 that allows me a little over $2 of upside on this contract because remember with the covered call if it breaks above forty nine fifty someone can then come in and buy it from me no matter how high it goes so say we’re at fifty five dollars at the expiration date someone can come in and buy my shares from me at forty nine fifty now I still make a profit because I got in at forty seven thirty three it’s just my upside is limited so I’ll lose my shares if we go back above this strike price and I’m okay with that because I still make profits so there’s still upside for me as well so I’m gonna put this right here and I’m just gonna say strike is forty nine fifty and then we can just keep an eye on that and know exactly where we are in terms of strike price and how things are moving forward so we’ll just keep an eye on that there so trade came in here 4950 I went ahead and got filled at two dollars and 20 cents per share and I bought 900 shares so I’m gonna go ahead and just do a recalculation on that real quick so a 220 times 900 shares so it ended up giving me a profit today of 1980 dollars in premium now you remember I keep the premium no matter what happens if the shares if it expires and we’re not above the strike price I get to keep the shares and I keep the premium if price goes above 49 50 by expiration I’ll lose the shares but I lose them at 49 50 and I still keep the premium so the per what I get paid if the shares get called away from me is gonna be one thousand nine hundred and fifty dollars so with a one thousand nine hundred and an $80 premium it’s pretty equal I’m getting almost the same amount for the premium that I am for the call away at this strike price if the share price goes higher now if it stays below the strike or goes a little lower I keep the shares and I’ll write another covered call on the shares the next month and I’ll just keep writing covered calls until I decide to sell the position outright or my shares ultimately get called away by someone so that was my trade on Zillow it was great I got it fairly early this morning and it was just a good set up on a good support level and I love that it was Monday because it starts the week off really really good my goal is to try to hit between two and three thousand dollars of premium profit each week and I hit basically two thousand this morning so now really I’m gonna watch things for the rest of the week and I’m really gonna be looking for entries for the following week so I will take opportunities if they present themselves this week but right now I’m super satisfied with the week and I’ve almost hit my target so I do want to show you what I we’ll be watching though moving forward for the week and that is on my way fair position just to kind of update you guys I had written a covered call on Wayfarer and then we got this really big push down that day you watch a couple videos ago you’ll hear me comment about how it was down $12 that day and how we were going out to exercise to manage a little bit of the stress but that was this day here so what I’m looking for on this is for a nice push back up because when it dumped down I bought two separate lots of fifty shares just ride along shares they aren’t in a covered call contract they were just because things drop real quick I wanted to get a few shares down low so if wave fare pushes back to 151 whenever that happens I’m gonna sell 50 shares that I bought at 141 so that’ll be a $500 gain on that and I hope it happens this week because then I can add it to the profits that I made today and that’ll give me roughly twenty five hundred dollars in profit on the week which then I can just call it quits and I’ve met my weekly goal and we’ll move into next week so right now that’s kind of where I’m sitting I’d like to hear how you guys did today let me know what you traded let me know if you’ve got in on Zillow if you saw this entry if you thought this support level was significant enough to maybe take an entry on it I’d love to hear your thoughts and opinions and we’ll be back at it tomorrow morning we’ll see you then thanks

4 Comments

  • Christian Pattugalan

    Hi Jimmy, great content!
    Just a quick question, what filters do you use for your swings on your scanner?

    Much love from the UK!

  • Manas F

    Thanks for the video Jimmy, keep up the good job. Been following you since you started uploading.
    However, I am a beginner trader, so I can't comment on the trade. I don't understand options/futures trading and I am assuming this trade is options/futures trading.
    Let's watch this channel grow 😉
    Love from Mauritius.

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