Archive for December, 2008
Thursday, December 4th, 2008
On 12/3 I opened another 100 share position in ALL
Buy: 100 @ $22.195 ($7.00 commission)
Initial Investment: $2226.50
Sold: $17.50 strike @ $5.60 ( $8.26 commission)
Net Investment: $1674.76
Expected Return: 3.55%
Selling this call will put me into the position in at 16.90 should the option expire worthless. As before, this level is ...
Posted in Rick Position - New | No Comments »
Thursday, December 4th, 2008
On 11/26 I opened a 100 share position in ALL
Buy: 100 @ $22.90 ($7.00 commission)
Initial Investment: $2297
Sold: $17.50 strike @ $6.60 ( $8.26 commission)
Net Investment: $1645.26
Expected Return: 5.39%
Selling this call will put me into the position in at 16.61 should the option expire worthless. This level is below the ...
Posted in Rick Position - New | No Comments »
Thursday, December 4th, 2008
All of my BAC positions were closed. I did not get the dividend so I ended up losing the commissions plus a little bit for my second open position. I am not going to break this one down in great detail because there is nothing to learn from this trade ...
Posted in Rick Position - Closed | No Comments »
Thursday, December 4th, 2008
Wednesday 12/3 was the ex-dividend date for BAC. On Monday and Tuesday I sold some deep in the money calls ($2.50 strike) assuming that anyone buying these would not be exercising them on Tuesday for the dividend since the 2.50 strike had no premium and it would be just like ...
Posted in Lessons | No Comments »
Tuesday, December 2nd, 2008
Today I opened another position in BAC (Bank of America).
Buy: 200 @ $13.55 ($7.00 commission)
Initial Investment: $2717
Sold: $2.50 strike @ $11.00 ( $9.50 commission)
Net Investment: $526.50
Expected Dividend: $64.00
Expected Return: 3.87% (-7.92% if called before 12/3)
I see this as almost no risk money. No person buys ...
Posted in Rick Position - New | No Comments »
Monday, December 1st, 2008
Today I opened a position in BAC (Bank of America). I was looking at this stock because it goes ex-dividend on 12/3 and was yielding around 8%. Since the market is so volatile these days, I wanted a stock/option combination that provided good downside protection while still giving a good ...
Posted in Rick Position - New | No Comments »
