Covered Calls for December 2007
Been a bit lazy to make these post, but here they are!
My 4 positions from last month didn’t get exercised -
Click Here for details
So I still have NVDA, AAPL, RIMM, AMZN
This is a no brainer one… since i still have the stock all I need to do is ‘lease/rent’ them out again to collect premium!
These are the combined adjusted returns for NVDA, AAPL, RIMM, AMZN over a two month period - new contracts were traded 19/11/2007
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Rolled my position down from $37.5 to $35 and received another $0.90 per stock. Most probably a break-even trade after interest if I get assigned/exercised for this. Not bad for picking the wrong stock. Is as if I never traded it. Obviously there is an opportunity cost, i.e. I could have put this money to more productive use on a winning trade… I can’t complain
The Trade - 22/10/2007
NVDA
Options/Contract = 100
Buy 100 NVDA @ $38.66
Sell 1 NVDA $35.00 Call @ $3.90
Time Value: $0.24
Intrinsic Value: $3.66
Breakeven Point: $34.76
Assigned Return: 0.69% ($0.24/$35.00)
Unassigned Return: 11.14% ($3.90/$35.00)
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Rolled my position down from $170 to $165 and received another $11.5 per stock. Still pretty damn good returns for 2 months
The Trade - 22/10/2007
AAPL
Options/Contract = 100
Buy 100 AAPL @ $174.42
Sell 1 AAPL $165.00 Call @ $23.92
Time Value: $14.50
Intrinsic Value: $9.42
Breakeven Point: $150.50
Assigned Return: 8.79% ($14.50/$165.00)
Unassigned Return: 14.5% ($23.92/$165.00)
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Rolled my position down from $110 to $103.375 and received another $11.55 per stock. Still pretty damn good returns for 2 months
The Trade - 22/10/2007
RIMM
Options/Contract = 100
Buy 100 RIMM @ $114.13
Sell 1 RIMM $103.38 Call @ $20.61
Time Value: $9.86
Intrinsic Value: $10.76
Breakeven Point: $93.52
Assigned Return: 9.53% ($9.86/$103.38)
Unassigned Return: 19.94% ($20.61/$103.38)
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Rolled my position down from $90 to $80 and received another $3.3 per stock. Small loss if I get assigned/exercise on this one. Not bad for a stock that went the wrong way
The Trade - 22/10/2007
AMZN
Options/Contract = 100
Buy 100 AMZN @ $90.52
Sell 1 AMZN $80.00 Call @ $10.05
Time Value: -$0.47
Intrinsic Value: $10.52
Breakeven Point: $80.47
Assigned Return: -0.59% (-$0.47/$80.00)
Unassigned Return: 12.56% ($10.05/$80.00)
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Below are some of the new positions i’ve opened for December Expiry.
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The Trade - 20/11/2007
QQQQ
Options/Contract = 100
Buy 100 QQQQ @ $50.38
Sell 1 QQQQ $50.00 Call @ $1.88
Time Value: $1.50
Intrinsic Value: $0.38
Breakeven Point: $48.50
Assigned Return: 3% ($1.50/$50.00)
Unassigned Return: 3.76% ($1.88/$50.00)
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The Trade - 20/11/2007
PCU
Options/Contract = 100
Buy 100 PCU @ $104.01
Sell 1 PCU $100.00 Call @ $9.61
Time Value: $5.60
Intrinsic Value: $4.01
Breakeven Point: $94.40
Assigned Return: 5.6% ($5.60/$100.00)
Unassigned Return: 9.61% ($9.61/$100.00)
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The Trade - 23/11/2007
WFT
Options/Contract = 100
Buy 100 WFT @ $61.93
Sell 1 WFT $60.00 Call @ $4.05
Time Value: $2.12
Intrinsic Value: $1.93
Breakeven Point: $57.88
Assigned Return: 3.53% ($2.12/$60.00)
Unassigned Return: 6.75% ($4.05/$60.00)
