Options Trading Journal

My MVIS Options Strategy & Trades from 2021 to 2022

Reflecting on my MVIS options trades. What I did right. What I did wrong. What I am going to do next.

MVIS is the symbol for Microvision Inc. It is engaged in developing a lidar sensor to be used in automotive safety and autonomous driving applications.

I was attracted to MVIS’s other technology such as Augmented Reality Microdisplay Technology, Touch Screen Interactive Display, and Consumer Lidar.

I really did not know much more than that. In April 2021, I don’t even know where and how to look for a great company.

I thought I will learn more along the way.

MVIS Options: Selling Put Options

29 April 2021 – sold 3 put options at strike $14 expiring 21 May 2021 for a premium of $450. Closed on 17 May 2021 for $255. Profit: $187.68.

19 May 2021 – sold 3 put options at strike $13 expiring 2 Jul 2021 for a premium of $735. Closed on 18 Jun 2021 for $210. Profit: $516.99

24 May 2021 – sold 3 put options at strike $13 expiring 2 July for a premium of $720. Closed on 2 Jul 2021 for $114. Profit: $597.48

5 Aug 2021 – sold 3 put options at strike price $14.00 expiring 15 Oct for a premium of $840. Closed on 27 Aug for $540. Profit: $291.88

8 Jun 2021 – sold 1 put option at strike price $18 expiring 19 Nov 2021 for a premium of $540. Assigned. Profit: $537.47

I collected $2,131.50 from 5 put options before being assigned 100 shares for $1,800. This means I got the 100 shares free and still received a profit of $331.5

7 Dec 2021 – sold 2 put options at strike price $7 expiring 31 Dec 2021 for a premium of $150. Assigned. Profit: $145.21

Another 200 shares was assigned for $1,400. I collected $145.21 which means the actual cost is $1,254.79

The total cost of 300 MVIS shares is therefore $1,254.79 – $331.50 = $923.29. Cost per share is $923.29/300 = $3.07

Although the actual purchase price of MVIS is very low, the share price has declined significantly and is currently trading at $4.48.

Is MVIS really a lousy stock? What should I do with my 300 shares now? I realized that I lacked the fundamental knowledge to be a successful investor. I need to take some lessons.

Learning to Evaluate MVIS

At the beginning of 2022, I attended a course called Options Millionaire Intensive bootcamp (affiliate link). OMI is a 3-day live bootcamp (virtual when I attended). I learnt some interesting investing concepts and strategies. One of them is a checklist for evaluating whether a company is good.

I know this is not comprehensive analysis but I think it is a good place to start for beginner investors. Baby steps.

  1. Operating cashflow (OCF) of a good company should be consistently positive. A bonus if it is growing.
  2. Net profit margin should be positive. 10% and more to be considered good.
  3. Interest coverage ratio should be positive. The larger the number the better. Nil is also good. It means the company has no loans.
  4. The current year Price/Earning ratio (PE) should be lower than the 5-yr PE
  5. The current year Earning Per Share (EPS) should be higher than the 5-yr EPS
  6. The Value line should be higher than the current share price. This means that the company shares could be trading at a discount.

Applying the OMI Checklist to MVIS

  1. MVIS’s operating cashflow is negative and I think it is getting larger. The Trailing Twelve Month cashflow (TTM) is (-US$36 million).
  2. MVIS’s net profit margin percentage is also negative for the last couple of years. There is no TTM value at time of evaluation.
  3. MVIS has no loans.
  4. MVIS current and 5-yr P/E ratio are not available.
  5. The current EPS is (-$0.31). There is no 5-yr EPS
  6. The Value line cannot be calculated because there is no 5-yr PE.

After running MVIS through the checklist on 2 June 2022, it is clear that it is not a good company at this moment. I wish I had known this earlier. Thankfully, my MVIS PUT options trades helped me lower the cost of owning MVIS.

  • Number of shares: 300
  • Total cost: $923.29
  • Cost price per share: $3.07

June 2022

I won’t be adding any more MVIS shares and plan to let them go at an opportune time by selling call options at a strike price higher than the cost price per share. This will generate some income before the shares are called away.

2 Jun 2022 – Sold 3 call options at strike price $5.00 expiring 1 Jul 2022 for a premium of $60.

The data I used for evaluation are sourced from and Moomoo (affiliate link). I have trading accounts with them and it includes access to relevant company and market information.

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