Friday, March 30, 2012
Thursday, March 8, 2012
$HAL Sold a covered call
Today’s date | 8-Mar-12 | |
Stock | HAL | |
Number of shares purchased | 500 | |
Stock price per share at outset | $ 34.210 | |
Stock commission | $ - | |
Anticipated dividends (per share) | $ - | |
Possible number of additional shares (Line 24) | 500 | |
Number of calls sold | 5 | |
Call option strike price | $ 38.00 | |
Call option price (per share) | $ 0.5000 | |
Number of puts sold | 0 | |
Put option strike price | $ - | |
Put option price (per share) | $ - | |
Option commission (puts and calls) | $ - | |
Expiration month | ||
Days to expiration | 8 | |
Now you can follow the step-by-step calculations: | ||
Purchase price of shares | $ 17,105.00 | |
Plus stock commission | $ - | |
Total stock cost | $ 17,105.00 | |
Option premium received on sale of call options | $ 250.00 | |
Less commission on calls | $ (5.00) | |
Equals net call option premium | $ 245.00 | |
Option premium received on sale of put options | $ - | |
Less commission on puts | $ - | |
Equals net put option premium | $ - | |
Offset by total net premium | $ 245.00 | |
Total cost of position | $ 16,860.00 | |
Deposit cash for stock purchase | $ - | |
Total Investment - Cash | $ 16,860.00 | |
Breakeven per share (above put strike) | $33.720 | |
Proceeds from selling called shares at strike | $ 19,000.00 | |
Less commission on stock sale | $ - | |
Less total (initial) stock cost | $ (17,105.00) | |
Equals profit on stock | $ 1,895.00 | |
Plus net option premium | $ 245.00 | |
Plus projected dividends on shares | $ - | |
Net profit on total position | $2,140.00 | |
Percentage return | 12.69% | |
Annualized return* | 579.11% | |
Wednesday, March 7, 2012
$HAL
I am heaviely invested in HAL and some of my positions are underwater. I currently sell covered calls on this stock because I feel that generally this stock will rise to $45.27 before 2013. This article from SeekingAlpha - Halliburton Well Positioned To Take Advantage Of 2 Long Term Energy Trends is extreamely well written and offers an interesting options strategy to take advantage of the anticipated stock increase.
http://seekingalpha.com/article/416951-halliburton-well-positioned-to-take-advantage-of-2-long-term-energy-trends?source=yahoo
http://seekingalpha.com/article/416951-halliburton-well-positioned-to-take-advantage-of-2-long-term-energy-trends?source=yahoo
http://seekingalpha.com/article/416951-halliburton-well-positioned-to-take-advantage-of-2-long-term-energy-trends?source=yahoo
Monday, March 5, 2012
$JBLU
Not the smartest covered call I have made but needed to do something.
Today’s date | 5-Mar-12 | |
Stock | JBlU | |
Number of shares purchased | 300 | |
Stock price per share at outset | $ 5.180 | |
Stock commission | $ - | |
Anticipated dividends (per share) | $ - | |
Possible number of additional shares (Line 24) | 300 | |
Number of calls sold | 3 | |
Call option strike price | $ 5.00 | |
Call option price (per share) | $ 0.3000 | |
Number of puts sold | 0 | |
Put option strike price | $ - | |
Put option price (per share) | $ - | |
Option commission (puts and calls) | $ - | |
Expiration month | ||
Days to expiration | 8 | |
Now you can follow the step-by-step calculations: | ||
Purchase price of shares | $ 1,554.00 | |
Plus stock commission | $ - | |
Total stock cost | $ 1,554.00 | |
Option premium received on sale of call options | $ 90.00 | |
Less commission on calls | $ (3.00) | |
Equals net call option premium | $ 87.00 | |
Option premium received on sale of put options | $ - | |
Less commission on puts | $ - | |
Equals net put option premium | $ - | |
Offset by total net premium | $ 87.00 | |
Total cost of position | $ 1,467.00 | |
Deposit cash for stock purchase | $ - | |
Total Investment - Cash | $ 1,467.00 | |
Breakeven per share (above put strike) | $4.890 | |
Subscribe to:
Posts (Atom)