Cracker Barrel and Visa

These trades are within my Interactive Brokers trading account:

Personally, I haven't set foot in Cracker Barrel Old Country Store ($CBRL).  But I've done well with dining stocks before.  The yield is 2.85%.  This is a longer term hold for growth.

I sold a covered call on Visa ($V) out to Sept'17 with a strike of $95 to collect a premium of $231.  Behind the trade, I do not want to lose my shares but I still want to make some extra money out of it by collecting a premium along the way.

Expiring on Feb 17th

Option	Accounts (Position)
CGX 17FEB2017 54 C	(-1)
DOL 17FEB2017 94 P	(-1)
FTS 17FEB2017 40 P	(-1)
HBAN 17FEB2017 13 P	(-2)
KO 17FEB2017 44 C	(-1)
KO 17FEB2017 40 P	(-1)
MDLZ 17FEB2017 39 P	(-4)
NKE 17FEB2017 52.5 P	(-1)
PEY 17FEB2017 30 C	(-1)
PEY 17FEB2017 27 P	(-1)
REI.UN 17FEB2017 26 P	Opened in Feb(-1)
SBUX 17FEB2017 52.5 P	(-1)

`

All of these short calls and puts are expiring Feb 17, 2017.  Most of them were opened in January and looks like they will all expire worthless.  I'll be looking to replenish my short puts to collect more premiums.  

February Commentary:

My covered call on $FTS.TO was assigned just before ex-dividend day.  I did not get my dividend.  I wasn't too sad to see this go as I was assigned shares @ $42, my average cost was $41.57 after collecting the premium I sold for Sept 16, 2016.  Even though, I did not make any capital gain from this trade, I did collect $66 from the premiums I sold for short call/put options for Feb 17th expiration date. 

I also made a earnings play on $AMGN and made 5.41% capital gain.

I bought a couple of long puts on $SPY.  They are not working out and will most likely take a loss.

GILD - Earnings Play Turns Bad

Whenever I try to make a quick buck, it ends up biting me in the arse.  On Tuesday, $GILD was trading in the range of $73 per share.  I sell to open (STO) a put on $GILD just before earnings to collect $46 in premiums with a strike price of $70 expiring Feb 10th.  

Option	Accounts (Position)
GILD 10FEB2017 70 P	(-1)

$GILD reported after closing with declining sales and less than optimistic guidance for next year.  Traders hit $GILD hard bringing the stock down 10% in a matter of two days, closing at $65.59 per share on Feb 9th.

What are my options now?

1. Buy to close (BTC) put to avoid forking over $7000 (assignment) and take a loss of about $397 as of today's market
2. Take assignment of 100 shares @ $70 and my average would be $69.54/share.  I would sell covered call to bring down my average cost base.
3. Roll my short put to a further out date to avoid taking a loss and tying up my capital.  BTC put for a loss then STO put to a further out date at the same or lower strike to offset the loss.

I haven't decided what to do yet.  But most likely, I'll either pick option 2 or 3.  I do not like to admit defeat just yet.  When life throws you lemons, just make lemonade!

Update on Feb 10th:
I decided to pick option 3, so I rolled out my short put to March 17, 2017 in hopes that $GILD will recover.  If $GILD is over $70 by March 17th, my put will be worthless.  I'll stand to make +46-354+431= $123 instead of taking the loss and my cash will be left untouched. 

Update on Mar 17th:

The day has finally come!  So how did my $GILD play out?  $GILD closed at $69.06.  I decided to take assignment (average cost $70-$1.23) and most likely sell it on the open market next Monday.  Hopefully, $GILD will hold above this price range and I can make a few bucks!