Money and Finance
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 return of 3.62% which translates to a 7.98% CAGR.
Lately Halliburton's share price has been struggling. A little over a week ago it was at it's YTD high and has gone down in almost a straight line since. I recently checked the price of the option and saw that it's currently around $0.80 per contract. I'm thinking of buying back the option to close it out. If I can buy it back at $0.80 I would have earned 1.58% in a little over a month which translates to a 18.61% CAGR.
I'm still weighing my options because I wouldn't necessarily mind the shares being called away to get the full $152 and get to sell my shares well above my purchase price. However I'm due to the tax implications of selling the shares early since they were bought through my ESPP I would like to the keep the shares long enough to at least get them taxed at the long term capital gains rate. Halliburton has been a pretty volatile stock since on 2/15/12 it was at $35.23, closed at $38.51 on 2/24/12, and is currently trading at $34.97. That's a 9.3% move up followed by a -9.19% all within the last 19 days.
- 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...
- 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 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...
- Put Options Explained
A lot of people hear the word options with respect to stocks and think it's a high risk venture. While options are for everyone I feel they definitely have a place in a portfolio. I prefer selling put options to call options which I will explain why...
- 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
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 return of 3.62% which translates to a 7.98% CAGR.
Lately Halliburton's share price has been struggling. A little over a week ago it was at it's YTD high and has gone down in almost a straight line since. I recently checked the price of the option and saw that it's currently around $0.80 per contract. I'm thinking of buying back the option to close it out. If I can buy it back at $0.80 I would have earned 1.58% in a little over a month which translates to a 18.61% CAGR.
I'm still weighing my options because I wouldn't necessarily mind the shares being called away to get the full $152 and get to sell my shares well above my purchase price. However I'm due to the tax implications of selling the shares early since they were bought through my ESPP I would like to the keep the shares long enough to at least get them taxed at the long term capital gains rate. Halliburton has been a pretty volatile stock since on 2/15/12 it was at $35.23, closed at $38.51 on 2/24/12, and is currently trading at $34.97. That's a 9.3% move up followed by a -9.19% all within the last 19 days.
- 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...
- 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 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...
- Put Options Explained
A lot of people hear the word options with respect to stocks and think it's a high risk venture. While options are for everyone I feel they definitely have a place in a portfolio. I prefer selling put options to call options which I will explain why...
- 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...