Nucor $NUE boring trade thoughts
During the investing journey, I’ve been in several phases. My old boss always used to say… “We are taking the field…”
For me, the field is always changing. Over the course of the last two years, I’ve felt like I constantly have to expand my tool belt, and learn new strategies and plays to complement what I’m already comfortable with.
I’ve done very well with LEAPs. I’m trying to get back to them. LEAPs are just long options…. and I’m always long. Always bullish on LEAPs (so far).
I bought some Nucor Steel ($NUE) 1/21/2022 back in June of 2020 when the stock was in the $40’s (lol). What a world. Today it was in the $110–115 range. Pity, but I only bought 6 calls. The whole steel sector went nuts, and Nucor pushed $130. I didn’t sell. Whoops.
On the ride back down, I sold those calls…. cost was $3.31, and I sold for $40 (nice — but they were worth $70 at their peak — ugh). $22k profit. BUT I took some of that money at bought 16 calls. Moved up the strike from 1/21/2022 to November monthlies. Those cost $2.80 each, and are currently trading down at $8.40.
Math so far, $22000- $4480 + $13440 (profit on original trade minus cost of new calls plus value of new calls). So far I’ve turned that original $2000 bet into $30,960, of which $17.5k is banked.
Nucor had a huge boom yesterday (infrastructure bill!) and a nearly as big dip today (profit taking? nah, it just does this. Market was down fractionally so of course Nucor moved about 10x as much (actually very common).
I write these posts not because a lot of people want to read them (although some of you do), but to help me think through my process and have to deal with the math.
This has been the least entertaining one so far, but I wanted to think through whether I should roll again tomorrow. I feel like the year is probably going to end on strong pump…. December joy and all those HF underperformers trying to catch up to the market with aggressive buying before year close. It probably won’t crash. Probably.
I’ve got a much more exciting steel post planned soon on Cleveland Cliffs, that will actually have some meat to it, instead of number spanking.
