The following adjustment was made today on SNDK:
06-Feb-07 - Buy Back & Roll Out/Down - BTC 2 Feb07 50.00 Call @ -0.06 -
06-Feb-07 - Continued Trade - STO 2 Apr07 45.00 Call @ 1.39 -
This trade is an example of my revised rolling strategy of choosing the best call option, whether short or long term, based on the average premium. The Feb07 50 Call had very little time value left so I bought it back and rolled out to Apr07 and down to the 45 strike. I compared the premiums for the 45 call in Mar (1 month), Apr (2 months) & Jul (5 months). The Mar was selling for .50, the Apr for 1.40, and the Jul for 3.00. If you average out the premiums on a monthly basis, the averages are .50 for Mar, .70 for Apr, and .60 for Jul. So, I chose the Apr 45 call since it had the highest average premium.
Current Position Summary:
Stock Investment: $10,854.00
Income Generated: $2,374.00
Percent Income Generated: 21.87%
Net Profit If Called: $520.00
Percent Return If Called: 4.79%
Annualized Return If Called: 4.84%
Days to Expiration: 361 days
Trade History:
24-Apr-06 - Initial Stock Position - BTO 100 SNDK @ 59.56 -
24-Apr-06 - Initial Call Option - STO 1 Jul06 57.50 Call @ 7.09 - Closed
06-Jul-06 - Buy Back & Roll Out/Down - BTC 1 Jul06 57.50 Call @ -0.16 -
06-Jul-06 - Dollar Cost Averaging - BTO 100 SNDK @ 48.98 -
06-Jul-06 - Combined Cost Basis - $10,854.00 200 @ 54.27 -
06-Jul-06 - Continued Trade - STO 2 Oct06 55.00 Call @ 3.39 - Expired
23-Oct-06 - Continued Trade - STO 2 Jan07 55.00 Call @ 2.14 - Closed
19-Dec-06 - Buy Back & Roll Out/Down - BTC 2 Jan07 55.00 Call @ -0.16 -
19-Dec-06 - Continued Trade - STO 2 Feb07 50.00 Call @ 1.69 - Closed
06-Feb-07 - Buy Back & Roll Out/Down - BTC 2 Feb07 50.00 Call @ -0.06 -
06-Feb-07 - Continued Trade - STO 2 Apr07 45.00 Call @ 1.39 -
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This blog will serve as a trading journal to track my options portfolio. Trade information will be posted weekly, including new positions, adjusted positions, and closed positions. The information presented here is for educational purposes only. Under no circumstances does this information represent a recommendation to buy or sell any stocks or options. If you choose to use this information, you do so at your own risk.
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- CCWriter
- I've been investing in the stock market for 30+ years. I started out like most investors with mutual funds, then progressed to individual stocks, and finally options trading, using Covered Calls and Cash Secured Puts as my primary strategies. I started this blog in 2006 to track my options trades and also started a discussion group, first hosted at Yahoo, and now at Groups.io, to help others who were interested in trading Covered Calls and Cash Secured Puts. I hope the information provided in this blog, and the accompanying discussion group, is helpful. If you're interested in learning more, please join the discussion group at the top of this page. We have many members who are always willing to help.
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Disclaimer:
The information presented here is for educational purposes only. Under no circumstances does this information represent a recommendation to buy or sell any stocks or options. If you choose to use this information, you do so at your own risk.