On Nov 1 we sold 6 contracts Nov 20 calls @ .40.
Nov 8, CROX @ 17.40, filled my exit order Buy to Close @ .05 cents
(Think or Swim does not charge commission to close for .05 cents or less.)
This closes my covered call position with profit of .35 x 6 contracts = $210.
Our cash balance is now $2424 and we still own 600 shares of CROX
bought @ 25. On the next rally, we will look to sell calls again to generate
additional income.
Tuesday, November 8, 2011
Tuesday, November 1, 2011
Sold November Covered Calls
On Nov 1, CROX @ 18.22
Sold 6 contracts Nov 20 calls @ .40 = collect $240 credit
CROX has been weak and I do not think it will rise above 20 by
expiration on Nov 19. If it stays below 20, I keep the $240.
If it rises above 20, I will adjust the position by rolling to higher strike price
for December calls.
If the price falls further, it might hit my exit order I placed an order to buy to close at .05 cents GTC (good till canceled) because if CROX price falls further,
this will close me out of the trade with .35 cents profit x 6 = $210.
Sold 6 contracts Nov 20 calls @ .40 = collect $240 credit
CROX has been weak and I do not think it will rise above 20 by
expiration on Nov 19. If it stays below 20, I keep the $240.
If it rises above 20, I will adjust the position by rolling to higher strike price
for December calls.
If the price falls further, it might hit my exit order I placed an order to buy to close at .05 cents GTC (good till canceled) because if CROX price falls further,
this will close me out of the trade with .35 cents profit x 6 = $210.
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