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

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

GT