Hello Demond,
Welcome and Happy Trading! I'm wondering, if you don't mind, what is your trading plan? Are you intending to hold the sahres long term and end up owning them for free by selling multiple calls? Or are you lloking to be called out?
OptionsMike
www.safe-options-trading-income.com
--- In ConservativeOptionStrategies@yahoogroups.com, "demond_johnson@..." <demond_johnson@...> wrote:
>
> 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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