Option | Accounts (Position) |
BMY 17MAR2017 70 C | U****211(-1) |
ENB 17MAR2017 54 P | U****211(-1) |
GILD 17MAR2017 70 P | U****211(-1) |
INTC 17MAR2017 35 P | U****211(-1) |
KEY 17MAR2017 38 P | U****211(-1) |
KR 17MAR2017 31 P | U****211(-1) |
MDLZ 17MAR2017 43 P | U****211(-1) |
MGM 17MAR2017 25 P | U****211(-1) |
PEY 17MAR2017 27 P | U****211(-1) |
XOM 17MAR2017 79.5 P | U****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.
No comments:
Post a Comment