APPL
The Trade - 20/8/2007
AAPL
Options/Contract = 100
Buy 100 AAPL @ $130.45 ($13,045.00)
Sell 1 AAPL $125.00 Call @ $5.30 ($530.00)
Time Value: -$0.15
Intrinsic Value: $5.45
Breakeven Point: $125.15
Assigned Return: -0.12% (-$0.15/$125.00)
Unassigned Return: 4.24% ($5.30/$125.00)
The reason why this looks strange is because this is the Apple share I had from last month, I rented the share out again and received $5.3 which will go towards protecting my capital from last month. I don’t have apositive outlook for the market and will be stay defensive where possible. Pretty cool heys, getting paid while your stocks goes down, somebody is paying you money for your unrealised donations. If I get assigned/exercised for this, I will come out with a very small donation. If I don’t get assigned/exercised then it means the stock has stayed below $125 and depending how low it went I will be rolling my position within the next few days.
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