I acquired 2 lots of INTC from selling the 35 & 36 covered calls back in June (the calls expired).
With call premium this was a 34.66 cost basis on 2 lots of INTC
On Jul 27 for playing earnings, I sold the 35 straddle for 166 credit, for breakevens at 33.34 & 36.66
1 lot of stock was called away at 35 yesterday right at the breakeven. (Costs another $15 for the assignment fee which sucks. )
The stock then sold off 1/2% in premarket the next morning. Had I gone with a say a 34/36 this assignment may not have happened.
However, a good thing is this reduces the positive deltas my portfolio holds too much of.
I still hold another lot of stock which has a decent gain at this point and I can either hold or sell another covered call against it to bring in more credit.
The put I expect to expire worthless but I'll close the put early if the value falls to less than 5c (no fee).
With call premium this was a 34.66 cost basis on 2 lots of INTC
On Jul 27 for playing earnings, I sold the 35 straddle for 166 credit, for breakevens at 33.34 & 36.66
1 lot of stock was called away at 35 yesterday right at the breakeven. (Costs another $15 for the assignment fee which sucks. )
The stock then sold off 1/2% in premarket the next morning. Had I gone with a say a 34/36 this assignment may not have happened.
However, a good thing is this reduces the positive deltas my portfolio holds too much of.
I still hold another lot of stock which has a decent gain at this point and I can either hold or sell another covered call against it to bring in more credit.
The put I expect to expire worthless but I'll close the put early if the value falls to less than 5c (no fee).
Comment:
Sold Sep 37 call for 50c against the remaining second lot of stock, for a stock gain of 6.8% on cost basis.
Comment:
On pullback in INTC, closed Sep 37 call for 5c no fee.
Then a few days later, I sold the
20 OCT 17 36/33 strangle @.80
If the stock is called away at $36 this would also also bring in a 2.8% return on the stock. At 59 DTE this would be about 17% annualized which is not too shabby.
Then a few days later, I sold the
20 OCT 17 36/33 strangle @.80
If the stock is called away at $36 this would also also bring in a 2.8% return on the stock. At 59 DTE this would be about 17% annualized which is not too shabby.