Friday, March 17, 2017

Expiring Options for March 17, 2017

Welcome to my wonderful maze of options!  Most stocks that have options expire on the third week of the month.  Today is March 17, 2017 and I have lined myself up with a few expiring as follows:

OptionAccounts (Position)
BMY 17MAR2017 70 CU****211(-1)
ENB 17MAR2017 54 PU****211(-1)
GILD 17MAR2017 70 PU****211(-1)
INTC 17MAR2017 35 PU****211(-1)
KEY 17MAR2017 38 PU****211(-1)
KR 17MAR2017 31 PU****211(-1)
MDLZ 17MAR2017 43 PU****211(-1)
MGM 17MAR2017 25 PU****211(-1)
PEY 17MAR2017 27 PU****211(-1)
XOM 17MAR2017 79.5 PU****211(-1)


From this group, I will collect a total of $766 in premiums before commissions.  

$GILD and $KR closed slightly under my strike price.  I decided to take assignments for both of them meaning I will fork over $7000 for GILD and $3100 for $KR even though the market value is below that.  I believe both will come back above my strike price and I will sell them for a profit or I will sell covered calls to collect premiums along the way.  I haven't decided my plan of action yet till I see how the market is on Monday.

Some major stocks also have weekly options.  Last week, I also sold a $SBUX put with a strike $55.50 for $0.10 for March 10th.  At that time, $SBUX was at $56 when I made that trade.  So I thought I could make a quick $10 in two days before it expires.  But $SBUX headed lower and fell below $55.50 last Friday.  So I got assigned 100 shares @ $55.50.  My average cost is $55.40.  I've held $SBUX a number of years ago.  I made good money from them... but I've always regretted selling my shares.  So now, I'm back in it again... not at the price I want though.  So I have opened up new options for them on March 16th (strangle option) as follows:
  • SOLD 1 SBUX May19'17 57.5 CALL @ 0.5 (I always sell at the wrong time as $SBUX went up today!)
  • SOLD 1 SBUX May19'17 52.5 PUT @ 0.75
If Starbucks stay within $52.50-$57.50 range, I'll keep my premiums of $1.25x100= $125 and I'll still have my 100 shares @ $55.40.  If Starbucks dip below $52.50, I will get assigned 100 shares @ $52.50 and average down my cost base or I can start panicking and roll my option out to a further expiry date to avoid assignment.  If Starbucks rise above $57.50, my shares will assigned @ $57.50 and I walk away with $210 capital gain + $125 premiums collected.  






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