Money and Finance
Yesterday I bought back the $42 Hal 07202012 Call option that I sold in early February. When I originally sold the option I was hoping that it would just expire since I didn't want to have to deal with the extra taxes due to the shares being bought through the ESPP. I sold the call for $1.60 with a $8.03 total commission so that netted me $151.97 or a 3.62% yield for the term of the option. I was able to buy back the option to close out the position for $0.76 yesterday with a total commission of $7.97 which cost me a total of $83.97. The 2 trades combined netted me a total of $68.00 or 1.62% option yield over 32 days. That equates to a 20.12% CAGR. Since I was able to get almost half of the option yield in only 20% of the time I thought it was a pretty solid move to lock in the gain and not have the risk of the shares being called away triggering a higher taxable event for my ESPP shares. Unfortunately the stock market decided that today it wanted to finally freak out about the global economic situation and I could've bought the call to close out the position for $0.62 which would have given me a much better gain. Oh well, pigs get slaughtered right? If the shares were not part of the ESPP then I would have let the option go to the end most likely although I feel that this was a good move regardless.
- 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....
- Recent Transactions
I have two more option trades to report from yesterday. I recently bought to close the $39 call option that I had sold on HAL that was expiring in April for a nice little profit. Since this freed up 100 more shares to sell a covered call on I did...
- Recent Transaction
Yesterday I sold another call option on some of my shares of HAL, my ESPP shares. I'm currently way overweight my employer's stock. I have just over 184 shares from the first purchase that went through that has already reached LTCG treatment...
- 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...
- Recent Transactions
Today I sold 2 option contracts in an attempt to add some more income. The first contract that I sold was the BAC Jan 18 2014 $7 Put for $1.73. If the option gets exercised then my cost basis for this transaction will be $5.27. If the option expires then...
Money and Finance
Recent Transaction
Yesterday I bought back the $42 Hal 07202012 Call option that I sold in early February. When I originally sold the option I was hoping that it would just expire since I didn't want to have to deal with the extra taxes due to the shares being bought through the ESPP. I sold the call for $1.60 with a $8.03 total commission so that netted me $151.97 or a 3.62% yield for the term of the option. I was able to buy back the option to close out the position for $0.76 yesterday with a total commission of $7.97 which cost me a total of $83.97. The 2 trades combined netted me a total of $68.00 or 1.62% option yield over 32 days. That equates to a 20.12% CAGR. Since I was able to get almost half of the option yield in only 20% of the time I thought it was a pretty solid move to lock in the gain and not have the risk of the shares being called away triggering a higher taxable event for my ESPP shares. Unfortunately the stock market decided that today it wanted to finally freak out about the global economic situation and I could've bought the call to close out the position for $0.62 which would have given me a much better gain. Oh well, pigs get slaughtered right? If the shares were not part of the ESPP then I would have let the option go to the end most likely although I feel that this was a good move regardless.
- 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....
- Recent Transactions
I have two more option trades to report from yesterday. I recently bought to close the $39 call option that I had sold on HAL that was expiring in April for a nice little profit. Since this freed up 100 more shares to sell a covered call on I did...
- Recent Transaction
Yesterday I sold another call option on some of my shares of HAL, my ESPP shares. I'm currently way overweight my employer's stock. I have just over 184 shares from the first purchase that went through that has already reached LTCG treatment...
- 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...
- Recent Transactions
Today I sold 2 option contracts in an attempt to add some more income. The first contract that I sold was the BAC Jan 18 2014 $7 Put for $1.73. If the option gets exercised then my cost basis for this transaction will be $5.27. If the option expires then...