UYG - Position Update

Written on January 13, 2009 – 1:01 pm | by admin

Today I bought back the Feb $7 calls that I sold against my 200 shares of UYG.  I sold them at $0.55 and bought them back at $0.15.  I did this because I feel the market is at a depressed state and I can sell them again at a higher price.  I have an order in to sell the calls again but I’m not sure it will get there without a decent rally.  I may also look to average down on my position to help out with the cost basis quite a bit.  Here is where I stand now:

Purchased: 200 @ $8.01
Initial Option Income: $1.20
Feb Option Income: $0.55 - $0.15 = $0.40
Other Option Income: $0.40
Expected Return: 9.99% 
Expected Hold Time: 4 option cycles

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