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. 


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