Hello Everyone,
My name is Demond Johnson. I am 37 years old and I am form Phoenix Az. I want to say thanks for adding me to the group, and look forward to trading ideas investing. I did a covered call on Sprint last month. Here is the trade break down.
On May 27th, 2010, I purchased 100 shares of Sprint for 527.95 (Comm. included), I then sold a 5 dollar June Call for 23.03. This reduced my original cost basis down to 504.92 dollars. (The Math: 527.95-23.03=504.92)
On June 18th, 2010, Sprint (S) was below 5 dollars. The value of 5 dollar June call was now 1 dollar. I closed the position for 4.48 (1+ 7.48 comm.)and got 14.54 after commission. This equaled an uncalled return of 2.8% for the month (The math(14.54/504.92=.028).
Because the July calls did not yield atleat 2%, I sold the 5 dollar Jan 2011 Calls for 73.51 after commission. My cost basis has now been reduced from 504.92 down to 439.49(The math:(504.92+8.48-73.51= 439.49).
Anyway, Thanks for your time and I look forward to seeing the learning what other members of the group are doing. Have a great Day.
Sincerely,
D. Johnson
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