Money and Finance
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 goal is to receive $1,500 in profit from option selling this year and I'm getting off to a decent start. I've got two closed/expired positions to update all of you on as well as two new positions.
This past Friday marked the expiration date for the call option I sold on Halliburton (HAL). Every quarter I receive more shares of Halliburton through the ESPP program at work so I want to try and divest those funds into other investments. I prefer to sell calls until the shares are called away to generate extra income on top of the dividends that they provide. On January 22nd I sold the $51 strike call option expiring on January 31st. In return for selling the option I received $46.00 in option premium to do as I wanted. The shares were trading below $51 on expiration so I got to keep the full option premium as profit. This is a $46.00 / $5,100 = 0.90% return in about 1.5 weeks. That's equivalent to at 36.60% annualized return. If only I could do that every 10 days and I would be one happy investor. I expected the shares to hover around the $51 mark and would then just sell another call if the shares weren't called away, but we all know how the markets decided to end January. This brought the price of Halliburton down into the $48.50 range so in hindsight I left some money on the table. I'll still look for opportunities to sell another call option because I need the capital from those shares for other investments, possibly a rental property.
Read more »
- 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 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
With today being expiration Friday, I figured we'd revisit the call options that I sold on 200 shares of Bank of America back in mid-August. I originally performed a buy-write of 200 shares which involves purchasing the shares and simultaneously...
- 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...
- 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
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 goal is to receive $1,500 in profit from option selling this year and I'm getting off to a decent start. I've got two closed/expired positions to update all of you on as well as two new positions.
This past Friday marked the expiration date for the call option I sold on Halliburton (HAL). Every quarter I receive more shares of Halliburton through the ESPP program at work so I want to try and divest those funds into other investments. I prefer to sell calls until the shares are called away to generate extra income on top of the dividends that they provide. On January 22nd I sold the $51 strike call option expiring on January 31st. In return for selling the option I received $46.00 in option premium to do as I wanted. The shares were trading below $51 on expiration so I got to keep the full option premium as profit. This is a $46.00 / $5,100 = 0.90% return in about 1.5 weeks. That's equivalent to at 36.60% annualized return. If only I could do that every 10 days and I would be one happy investor. I expected the shares to hover around the $51 mark and would then just sell another call if the shares weren't called away, but we all know how the markets decided to end January. This brought the price of Halliburton down into the $48.50 range so in hindsight I left some money on the table. I'll still look for opportunities to sell another call option because I need the capital from those shares for other investments, possibly a rental property.
Read more »
- 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 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
With today being expiration Friday, I figured we'd revisit the call options that I sold on 200 shares of Bank of America back in mid-August. I originally performed a buy-write of 200 shares which involves purchasing the shares and simultaneously...
- 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...
- 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...