Money and Finance
With Intel currently trading at $25.60 it looks like my put option that I sold on Intel is going to expire today. It's a good and bad thing because I wouldn't have minded getting Intel at the $25 strike less the premium. But I got a pretty good return on the option. I sold the $25 July 20 2012 put for $0.53 less commission on June 11. Since it is expiring today I received a total of $45.01 in premium on the $2,500 over 39 days. That works out to a 1.80% return which when annualized is a 18.19% return. Not too bad. Even after taxes this will work out to a 1.30% return annualized to 12.82%.
As I said earlier it's a little bittersweet. I did get a good return but honestly I would have preferred that Intel be trading at $24.99 today and the option be exercised allowing me to a get a entry price of around $24.63. This would have increased my stake in Intel at a price that is at a discount to it's fair value, as a I calculated it, by about 19%.
Now I have to figure out what to do with the extra $2,500 in cash that is freed up. I might be looking at other put options to sell on Intel because I would like to add to my position but if the price isn't right then that'll be a no go.
- Recent Transaction
Today I decided to go on and buy back my $7 Jan 18 2014 Put option on Bank of America. I bought to close the option for $0.89 plus $7.98 in commission/fees. It cost me a total of $96.98 to close out the position. I originally sold the put back on...
- Selling Puts For Added Income
This morning Archer-Daniels Midland was trading at $26.97. Since I would like to get more into the stock with it trading around a 14% discount to my calculated fair value, I figured I would check out the potential option moves to make. The fair value...
- Recent Transaction
On Tuesday, I decided to sell another put option on Intel. This time it was a $26 September 22, 2012 Put Option for $0.48. After commission I netted a $40.01 option premium. Here's how the option can play out. (1) Option expires - I received $40.01...
- Intel Put Option
With Intel closing at $26.27 on Wednesday August 15th, it appears that the $25 August 2012 put option that I sold back in July will expire yet again unless the share price takes a 5% hit between now and end of trading Friday. .nobrtable br { display:...
- Recent Transaction
This is going in the Recent Buy section even though I didn't buy anything. I sold a put contract for Intel today expiring July 20, 2012. The strike price is for $25 and I sold it for $0.53 per share or $53. By selling this put contract I was able...
Money and Finance
Intel Put Option
With Intel currently trading at $25.60 it looks like my put option that I sold on Intel is going to expire today. It's a good and bad thing because I wouldn't have minded getting Intel at the $25 strike less the premium. But I got a pretty good return on the option. I sold the $25 July 20 2012 put for $0.53 less commission on June 11. Since it is expiring today I received a total of $45.01 in premium on the $2,500 over 39 days. That works out to a 1.80% return which when annualized is a 18.19% return. Not too bad. Even after taxes this will work out to a 1.30% return annualized to 12.82%.
As I said earlier it's a little bittersweet. I did get a good return but honestly I would have preferred that Intel be trading at $24.99 today and the option be exercised allowing me to a get a entry price of around $24.63. This would have increased my stake in Intel at a price that is at a discount to it's fair value, as a I calculated it, by about 19%.
Now I have to figure out what to do with the extra $2,500 in cash that is freed up. I might be looking at other put options to sell on Intel because I would like to add to my position but if the price isn't right then that'll be a no go.
- Recent Transaction
Today I decided to go on and buy back my $7 Jan 18 2014 Put option on Bank of America. I bought to close the option for $0.89 plus $7.98 in commission/fees. It cost me a total of $96.98 to close out the position. I originally sold the put back on...
- Selling Puts For Added Income
This morning Archer-Daniels Midland was trading at $26.97. Since I would like to get more into the stock with it trading around a 14% discount to my calculated fair value, I figured I would check out the potential option moves to make. The fair value...
- Recent Transaction
On Tuesday, I decided to sell another put option on Intel. This time it was a $26 September 22, 2012 Put Option for $0.48. After commission I netted a $40.01 option premium. Here's how the option can play out. (1) Option expires - I received $40.01...
- Intel Put Option
With Intel closing at $26.27 on Wednesday August 15th, it appears that the $25 August 2012 put option that I sold back in July will expire yet again unless the share price takes a 5% hit between now and end of trading Friday. .nobrtable br { display:...
- Recent Transaction
This is going in the Recent Buy section even though I didn't buy anything. I sold a put contract for Intel today expiring July 20, 2012. The strike price is for $25 and I sold it for $0.53 per share or $53. By selling this put contract I was able...