AA - Update Position
Written on January 20, 2009 – 12:17 pm | by admin
I sold some Feb $10 calls on my Alcoa position. I’m not waiting for better premiums for one main reason. My annual percentage return went up for the price I sold them at today and I’m hesitant that we will get much of a bounce. I would rather lock in a good return and have it rocket to $20 than to wait and have the stock drop to $5. I’ll take my money now please. I did make the rookie mistake of selecting the wrong order type so I am adding the extra commission to this position since its the stock I made the mistake on. I bought 2 contracts to open instead of selling them to open.
Purchased: 200 @ 11.67
Initial Option Income: $1.95
Feb Option Income: $0.37
Other Option Income: $0.00
Expected Return: 5.27% (36.11% annually)
Last Period Expected Return: 2.31% (31.60% annually)
Option periods held: 2
* All return after buy and sell commissions
** Last Period Expected Return is the return I would have gotten if my option was exercised instead of expired.
Tags: AA
