Money and Finance
It's time to get caught up on some option moves that have gone through in the past week or so. I had a call option get executed on January 18th and purchased 100 shares of Bank of America. Also last week I sold a call option on Halliburton. I'll detail the two option moves below.
I don't normally buy call options as my typical strategy is to sell put options and occasionally sell calls, but at the time my capital was low and I felt there was a huge opportunity to make some money. I wish I could have made a larger bet but I'm happy with the way things turned out. I purchased 2 $10 calls on Bank of America (BAC) back in March of 2012 for $2.11 each. At the time Bank of America was trading in the $9-10 range so there still needed to be a lot of upside as BAC needed to be trading above $12.16 before I'd break-even. That would have required a greater than 28% increase before I'd make any money. Bank of America was still the bane of investors at the time, but since I was able to purchase a LEAP and had almost 2 years for the share price to recover that was fine by me.
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- Lots Of Options
No this post isn't about all the great investment opportunities that Mr. Market is giving us, it's about all of my recent option trading/selling activity. There's been a lot more activity on this front than I expected to be reporting. My...
- Recent Option Transaction
Well the third Friday of October rolled around and that means that it's expiration day for those that dabble in options. I had originally sold a call option on 100 shares of HAL which I purchased through the ESPP program at work back in August....
- Expiration Friday
The third Friday of July came and went meaning it's option expiration time. Three different options expired on Friday with my 2 call options on Halliburton (HAL) being in the money and my put option on Clorox (CLX) expiring out of the money. So...
- Recent Buy
This morning I performed a buy-write of 200 shares/2 call options for Bank of America (BAC) expiring on October 20, 2012. The reason I went the buy-write route is that you can save on commission by executing them together rather than separate. Let's...
- Option Buyback?
Back in the beginning of February I sold a call option for HAL with a strike price of $42 for $1.60. The option expires on July 20th. Based on the sale if the option expired I would have earned $151.97 over about 5 months. This would have been a total...
Money and Finance
Option Expiration and a New Option Position
It's time to get caught up on some option moves that have gone through in the past week or so. I had a call option get executed on January 18th and purchased 100 shares of Bank of America. Also last week I sold a call option on Halliburton. I'll detail the two option moves below.
I don't normally buy call options as my typical strategy is to sell put options and occasionally sell calls, but at the time my capital was low and I felt there was a huge opportunity to make some money. I wish I could have made a larger bet but I'm happy with the way things turned out. I purchased 2 $10 calls on Bank of America (BAC) back in March of 2012 for $2.11 each. At the time Bank of America was trading in the $9-10 range so there still needed to be a lot of upside as BAC needed to be trading above $12.16 before I'd break-even. That would have required a greater than 28% increase before I'd make any money. Bank of America was still the bane of investors at the time, but since I was able to purchase a LEAP and had almost 2 years for the share price to recover that was fine by me.
Read more »
- Lots Of Options
No this post isn't about all the great investment opportunities that Mr. Market is giving us, it's about all of my recent option trading/selling activity. There's been a lot more activity on this front than I expected to be reporting. My...
- Recent Option Transaction
Well the third Friday of October rolled around and that means that it's expiration day for those that dabble in options. I had originally sold a call option on 100 shares of HAL which I purchased through the ESPP program at work back in August....
- Expiration Friday
The third Friday of July came and went meaning it's option expiration time. Three different options expired on Friday with my 2 call options on Halliburton (HAL) being in the money and my put option on Clorox (CLX) expiring out of the money. So...
- Recent Buy
This morning I performed a buy-write of 200 shares/2 call options for Bank of America (BAC) expiring on October 20, 2012. The reason I went the buy-write route is that you can save on commission by executing them together rather than separate. Let's...
- Option Buyback?
Back in the beginning of February I sold a call option for HAL with a strike price of $42 for $1.60. The option expires on July 20th. Based on the sale if the option expired I would have earned $151.97 over about 5 months. This would have been a total...